Fraud


The Financial Crimes Enforcement Network (FinCEN) released guidance intended to help financial institutions file more precise suspicious activity reports (SARs) as the agency sets it sights on foreign corruption and related money laundering. Fin-CEN says a more effective use of SARs will help law enforcement better detect and analyze trends and patterns. It will also enable the agency to provide better feedback and subsequent guidance to the financial industry.

The guidance in FIN-2008-G005 defines the terms “senior foreign political figure” and “proceeds of foreign corruption.” It also requests that financial institutions include the term “foreign corruption” in the narrative portions of all SARs filed in connection with such activity. This ensures law enforcement identifies the activity as early as possible.

The guidance is available at www.fincen.gov/fin-2008-g005.pdf.

FinCEN proposed an amendment to a Bank Secrecy Act (BSA) regulation that would broaden exemptions from requirements to report currency transactions in excess of $10,000. The notice of proposed rulemaking was issued in accordance with recent recommendations by the Government Accountability Office and FinCEN’s own research.

Current regulations on Currency Transaction Reports (CTRs) allow depository institutions to grant exemptions under the following circumstances:

1. Phase I exemptions. Transactions made by other depository institutions, governmental departments or agencies, those acting with governmental authority, or public companies and their subsidiaries that are listed on one of three major exchanges referenced in FinCEN’s regulations.

2. Phase II exemptions. Reportable transactions in currency by eligible nonlisted business or payroll customers.

Under the proposal, depository institutions would no longer be required to:

1. File exemption forms for, or to annually review, customers that are depository institutions, government agencies, or entities acting with governmental authority.

2. Renew every two years a designation of exempt person filing for otherwise eligible Phase II customers.

3. Wait 12 months before designating otherwise eligible Phase II customers for exemption.

The notice of proposed rulemaking is available at http://edocket.access.gpo.gov/2008/pdf/E8-8955.pdf. Comments must be received by June 23, 2008. 

 
 
 

 

 

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

COLUMN

Deflecting clients’ requests for defense and indemnity

Client requests for defense and indemnity by the CPA firm are on the rise. Requests for such clauses are unnecessary and unfair, and, in some cases, are unenforceable.