The FINCEN leaks and expected changes in the AML/CFT reporting requirements for 2021 under the new Administration

Recently, the House of Representatives and the Senate voted to override President Trump’s veto of the National Defense Authorization Act for Fiscal Year 2021 (“NDAA”)  Under the NDAA is the Anti-Money Laundering Act of 2020 (“AMLA”) which includes the Corporate Transparency Act(“CTA”). The AMLA expands the Bank Secrecy Act (“BSA”) and modernizes and strengthens theUnited States’ financial crime monitoring systems. Among the significant provisions in the AMLA is the creation of a non-public, secure central registry to be administered by the Financial Crimes Enforcement Network (“FinCEN”) to track the beneficial ownership of business entities formed in or registered in the United States. Information filed under the AMLA/CTA will be available to state law enforcement authorities and to “a Federal agency engaged in national security, intelligence, or law enforcement activity”. In addition, a reporting company may authorize FinCEN to provide information to a bank or other financial institution to satisfy the bank’s or institution’s “know your customer” or other “diligence” requirements.

• To inform the attendee of the background and events comprising what has been termed as the “FINCEN leaks”;
• To Inform the attendee of some of the outcomes and implications which result from the FINCEN leaks;
• To provide the attendee with major recommendations flowing from the FINCEN leaks and their aftermath and what changes are ahead for both the financial industry and investigators/law enforcement;
• To explain to the attendee some of the major legislative changes coming out of the Anti-Money Laundering Act of 2020 and how these will address some of the issues revealed by the FINCEN leaks and other related debates;
• To inform the attendee about corporate transparency initiatives and new reporting requirements;
• To provide the trainee with some recommendations on how institutions can adapt to outcomes from the FINCEN leaks and the attendant legislative and regulatory changes.

• Welcome and Introduction
• Background and history of the FINCEN leaks
• What was revealed by the FINCEN leaks?
• The effect upon and reactions from the financial industry
• Response from FINCEN, policy-makers, and investigators
• Legislative and regulatory changes projected
• Anti-money Laundering Act of 2020
• New reporting requirements
• Recommendations for financial institutions
• Conclusion
• Questions

Under the AMLA/CTA a “reporting company” must disclose and update the names and identifying information of all “beneficial owners” (newly defined terms for such purposes) or be subject to substantial financial and criminal penalties. The reporting obligation applies to existing entities as well as newly formed entities. Once FinCEN adopts regulations under AMLA/CTA, newly formed entities must file promptly the following formation. Existing entities have up to two years to file beneficial ownership reports after FinCEN adopts AMLA/CTA regulations.

• Bankers
• Non-bank financial industry
• Compliance officers
• Risk management specialists
• Customer relationship managers
• General counsel
• Senior management
• AML/CFT officers

Kenneth Barden is a seasoned Compliance and Regulatory Specialist.  He was trained as a lawyer and is admitted to the practice of law in the United States and abroad.  He is a certified Anti-Money Laundering Specialist and is COSO-certified. He has over 37 years of experience in both the public and private sector, including over 14 years overseas. He has been a contributing author to several books, articles and other publications relating to compliance issues.  He is a graduate of Indiana University School of Law, and has completed several post-graduate study programs.