Exploring Anti-Money Laundering Developments and Compliance Requirements in 2012
Anti -Money Laundering remains a topic of perennial interest for banking and financial industry. With new sophisticated cross border technologically advanced financial crimes, even seasoned veterans face enormous challenges. Additionally, companies face considerable challenges in complying when new rules and regulations are passed. Knowing the latest developments and learning how to assemble effective Anti -Money Laundering Programs is the best key to eliminate potential fallouts.The Knowledge Group is producing a LIVE webcast which will explore the issues and concerns surrounding this topic and will provide valuable information and analysis. Exploring Anti – Money Laundering Developments and Compliance Requirements LIVE Webcast is a must attend for: Financial Institutions and their Chief financial Officers, Risk Managers, Consultants, Financial Industry Attorneys, and industry watchers.The assembled panel of key thought leaders will discuss the following in a LIVE two-hour Webcast:
- Latest International AML Requirements
- Guidance on how to develop and implement an effective Bank Secrecy Act/Anti-Money Laundering programs
- AML best practices in legal actions
- Effective Monitoring of Suspicious Activity Reports or SARs
- Anti-Money Laundering Rules for Investment Advisors, Broker Dealers, and Nonbank Mortgage Lenders
- Up-to-the Minute Regulatory Updates
Thomas A. Sporkin, Partner,
- Describe how regulators use and rely on SARS – and provide some prospective as to why regulators get upset when they learn of illegal conduct after the damage has been done and then look to the financial institutions for failing to detect money laundering/suspicious activity that could have prevented the damage.
- Briefly describe the conduct and distill out some key takeaways from recent actions brought by numerous regulators and, in one instance, a private litigant to demonstrate the recent surge in popularity of AML charges:
- ING Bank (action against ING for moving billions of dollars for Cuban and Iranian entities) – OFAC/DOJ/DANY
- Community One Bank Corp (DPA for failing to file SARs resulting in failure to alert regulators to Ponzi scheme) – DOJ
- In re E*Trade Clearing (C&D for failing to identify and vet 65,000 joint account holders pursuant to CIP rule) – SEC
- In re Pinnacle Capital Markets (C&D for CIP program failure) – SEC/FINRA/FinCEN
- In the Matter of Pacific National Bank (civil penalty order issued against Ecuador bank, 4 board members, and CEO) – OCC
- HSBC (Mexican drug money) – Senate Permanent Subcommittee on investigations
- Standard Chartered (facilitating Iranian roundtrip transactions by wire stripping) – NY Dept. of Financial Services
- TD Bank (formerly Commerce Bank / failure to detect the Rothstein investment fraud) – private litigation
Laura Billings, Counsel ,
Miller & Chevalier Chartered
- I’ll start with some anecdotal remarks regarding cases I prosecuted, these include AML cases against FIs and the first stripping cases to have ever been brought (Credit Suisse, Lloyds, and Barclays).
- I’ll migrate into AML compliance trends.
- Specifically, I’d like to talk about the trend of compliance convergence as it relates to AML/BSA, a trend about which I’ve been thinking and writing lately. I’d like to discuss the potential cross over with OFAC, FCPA, and FATCA compliance.
Brian C. McCormally, Partner,
Arnold & Porter LLP
- Recent BSA enforcement actions by the federal banking agencies highlight the relevance of BSA/AML compliance for institutions of all sizes
- Some are largely remedial, not punitive
- Asian Bank (FRB, August 1, 2012)–includes lookback requirement
- Commerzbank AG NY Branch (FRB June 8, 2012)– includes CTR and SAR lookback review
- Some include CMPs
- Pacific National Bank (OCC March 23, 2011)–$7 million CMP
- Zions First National Bank (OCC February 2011)–$8 million CMP
- In particularly severe cases, DOJ is involved and DPAs are used (along with CMPs and remedial requirements)
- Ocean Bank (DPA August 22, 2011)–$10.9 million CMP (FDIC, FinCEN, and FL State)
- Some are largely remedial, not punitive
- Proposed FinCEN modification to CDD rules to identify beneficial ownership reflects trend towards increasing regulatory expectations of AML programs
- Investigative burden on institutions will increase
- Further expansion of bank’s “law enforcement” role
- BSA/AML compliance must remain at the forefront of Enterprise Risk Management efforts as the government’s expectations continue to increase
- Evolution of KYC requirements to require greater understanding not only of customers but of their related interests
- Need for greater understanding and appreciation of BSA requirements at highest levels of the institution
- Recognition of the risks posed to the institution from failure to satisfy BSA requirements
Who Should Attend:
- AML/BSA Professionals
- Money Laundering Reporting Officers
- Money Service Businesses
- Bank and Financial Institution Executives
- Bank and Financial Institution Auditors
- Banking Attorneys & Consultants
- Anti–Money Laundering Lawyers and Specialists
- Security Operations
- Fraud Monitoring
- Business Analysts
- Fraud Analysts
- Senior Executives from Financial Institutions
- Compliance Officers
- Thrifts and Credit Unions
Mr. Sporkin has been a partner with BuckleySandler LLP since June 2012 and advises financial institutions on best practices regarding AML policies and procedures. Mr. Sporkin served for nearly 20 years in the Securities and Exchange Commission’s Division of Enforcement, spending considerable time investigating potential BSA violations and conducting surveillance using BSA data. In January 2010, Mr. Sporkin was selected to lead the SEC’s efforts to build and manage the Office of Market Intelligence, a new office established in the aftermath of the Madoff fraud to detect unlawful conduct spanning all SEC program areas. In that role, Mr. Sporkin oversaw the SEC’s BSA review group. By January of 2012, more than half of all Division of Enforcement investigations were being sourced out of OMI, certain of which arose out of SAR reviews, including those relating to insider trading, investment schemes, and market manipulations.
Mr. Sporkin has been a partner with BuckleySandler LLP since June 2012 and advises financial institutions on best practices regarding …
Laura Billings serves as Counsel with Miller & Chevalier and practices in the area of white collar criminal defense, with particular emphasis on complex financial crimes. She has broad experience in internal and congressional investigations, particularly those relating to criminal tax, economic sanctions and export controls, anti-money laundering, and the Foreign Corrupt Practices Act.Before joining the firm, Ms. Billings served for nine years as an Assistant District Attorney in the Manhattan District Attorney’s Office. Her work at that office focused on financial investigations conducted in partnership with federal and international law enforcement and regulatory entities. The cases she handled involved issues such as use of offshore bank secrecy jurisdictions to commit securities fraud, tax evasion, and money laundering; violations of the Bank Secrecy Act; illegal money remittance operations; abuses of correspondent banking relationships; and prohibited use of the U.S. financial system by foreign entities.
Laura Billings serves as Counsel with Miller & Chevalier and practices in the area of white collar criminal defense, with …
Prior to joining Arnold & Porter in 2006, Brian McCormally served as Director of the Enforcement and Compliance Division of the OCC, and overall has more than 20 years of service in senior enforcement and regulatory compliance positions there and at the OTS. He currently represents clients in a variety of enforcement actions or investigative proceedings brought by federal or state agencies. He has led the firm’s representation of clients in matters relating to regulatory approval of significant recapitalizations of troubled banks, the settlement of multi-billion dollar bankruptcy claims filed by troubled banks, and the successful resolution of two multi-billion dollar banks with a parent holding company in bankruptcy; enforcement actions alleging unfair or deceptive lending and marketing practices, Bank Secrecy Act and anti-money laundering non-compliance, and consumer disclosures and lending practices violations; conservatorship and receivership issues; and general safety and soundness criticisms. While in the government, Mr. McCormally had key leadership experience in BSA/AML compliance. Among other things, he developed and implemented strategies to evaluate the adequacy and effectiveness of BSA/AML compliance programs of national banks and branches of foreign banks; served as legal advisor to senior OCC officials on significant BSA/AML compliance program issues of national banks and federal branches of foreign banks; served as legal reviewing official for all recommended BSA/AML and USA PATRIOT Act violations and enforcement actions; and negotiated resolutions and/or oversaw litigation of enforcement actions designed to address BSA/AML and anti-terrorist financing compliance program deficiencies. Mr. McCormally is profiled in the 2012 edition of Chambers USA: America’s Leading Lawyers for Business as a leading practitioner in Financial Services Regulation: Banking (Enforcement & Investigations).
Prior to joining Arnold & Porter in 2006, Brian McCormally served as Director of the Enforcement and Compliance Division of …
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About BuckleySandler LLP
With over 150 attorneys in Washington, DC, Los Angeles, and New York, BuckleySandler is among the leading financial services law firms in the country. Our attorneys have a track record of successfully assisting clients in regulatory, enforcement, litigation, transactional, and public policy matters. Currently, BuckleySandler represents the top 10 largest banks in the United States; nine of the top 10 mortgage lenders; the top 10 mortgage servicers; the top 10 credit card issuers; and numerous community banks and non-bank financial services companies.Over the past two decades, our attorneys have served as lead defense counsel in more than 100 high-stakes class actions, represented our clients in a multitude of state and federal enforcement proceedings, and had a hand in drafting a majority of the significant laws that impact the financial services industry.
About Miller & Chevalier Chartered
The pursuit of international business is coupled with the obligation to ensure compliance with a package of U.S. and multilateral legal regimes — anti-money laundering laws, export controls and economic sanctions, anti-corruption laws, customs laws, anti-boycott laws, and key elements of the Sarbanes-Oxley and Dodd-Frank Acts — that follows companies, their employees, agents, and sometimes affiliates wherever business leads them. Miller & Chevalier is a Washington, D.C. law firm with significant experience counseling, designing compliance programs, and representing clients in internal investigations, enforcement actions, due diligence, litigation, and novel issues. The firm assists companies in both mitigating risks and satisfying U.S. government regulations and evolving “best practices.” Miller & Chevalier is a trusted partner to clients in the United States and around the world, providing solutions to their most complex problems, as well as counsel that enables clients to seize new opportunities.
About Arnold & Porter LLP
Arnold & Porter’s financial services group is widely recognized to be among the nation’s premier financial services practices. Our team of over 35 lawyers, led by senior lawyers with significant experience in government regulatory agencies, affords clients comprehensive regulatory, litigation, and transactional advice on complex and challenging matters, and our broad experience in dealing with financial regulatory agencies allows us to provide highly informed and sophisticated counseling and representation.The practice group is recognized for developing innovative structures and novel solutions to regulatory issues, which allow clients to optimize their business strategy. Clients include a broad cross-section of bank holding companies, savings institutions, foreign banks, insurance companies, securities firms, investment managers, electronic commerce businesses, and foreign governments. The team is supported by the full interdisciplinary resources of Arnold & Porter, including the Corporate and Securities; Litigation; Public Policy and Legislative; Antitrust/Competition; Tax, Trusts, and Estates; ERISA; Environmental; and Intellectual Property practice groups.