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Canada’s Proposed AML Changes for MSBs

What’s Old is New Again, Well Updated

On June 9th, 2018, draft amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its enacted regulations (there are five separate regulations that we’re going to collectively call regulations here for simplicity’s sake). This article is intended to give a high-level summary of the proposed amendments as they relate to Money Services Businesses (MSBs).

This article should not be considered advice (legal, tax or otherwise). That said, any of the content shared here may be used and shared freely – you don’t need our permission. While we’d love for content that we’ve written to be attributed to us, we believe that it’s more important to get reliable information into the hands of community members (meaning that if you punk content that we wrote, we may think you’re a jerk but we’re not sending an army of lawyers).

Finally, we want to encourage the community to discuss the proposed changes and submit meaningful feedback for policy makers. The comment period for this draft is 90 days. After this, the Department of Finance takes the feedback to the bat cave and drafts a final version of the amendments. From the time that the final version is published, the draft indicates that there will be 12 months of transition to comply with the new requirements.

♬The Times Regulations Are Changing♬

Foreign MSBs

Currently, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued a policy interpretation (PI-5594) in August of 2013, which states that a “real and substantial connection” to Canada must be present for an entity to be required to register as an MSB with FINTRAC.  A “real and substantial connection” was defined in the interpretation as having one or more of the following:

  • Whether the business is incorporated in Canada;
  • Whether the business has agents in Canada;
  • Whether the business has physical locations in Canada; and/ or
  • Whether the business maintains a bank account or a server in Canada.

The draft amendments introduce a new definition, which is “Foreign Money Services Business” that means anyone serving Canadian customers or entities in Canada is now subject to all Canadian requirements no matter where they are located.  Throughout the proposed changes, where there is a reference to money services businesses, there is also a reference to foreign money services businesses.  This will be significant to MSBs who operate non-face-to-face in the online marketplace and do not reside in Canada.

Non-Face-To-Face Customer Identification

Currently, there is a requirement that when customers are identified using the dual process method, the document and/or data that you collect is in its “original” format. This has been interpreted to mean that if the customer receives a utility bill in the mail, they must send you the original paper (not scanned or copied) document. The word “original” will be replaced with “authentic” (meaning that so long as you believe that the utility bill is a real utility bill for that person, it doesn’t need to be the same piece of paper that they received in the mail).

In addition, there are provisions that would allow reporting entities to rely on the identification conducted previously by other reporting entities. If this method is used to identify a customer, the reporting entity must immediately obtain the identification information from the other reporting entity and have a written agreement in place requiring the entity doing the identification to provide the identification verification within 3 days of the request.

Reporting EFTs of $10,000 or More

If you conduct international remittance transactions at the request of your customers, the requirement to report transactions of $10,000 or more will now be your responsibility, not your financial services provider.

The proposed change removes the language commonly known as the “first in, last out” rule.  This means that the first person/entity to ‘touch’ the funds for transactions incoming to Canada or the last person/entity to ‘touch’ the funds for a transaction outgoing from Canada had the reporting obligation (as long as the prescribed information was provided to them).

The update will change the reporting obligation to whoever maintains the customer relationship. So if you initiate a transaction at your customer’s request (outgoing transaction) or provide final receipt of payment to your customer (incoming transaction), it will be your obligation to report that transaction to FINTRAC.

For example, if the flow of the instructions for payment were as follows:

Currently, the reporting obligation of the outgoing EFT would fall to the bank in Canada.  With the draft updates, the reporting obligation would now fall to the MSB in Canada, because they have the relationship with the customer initiating the transaction.

 

Third Party Determination

Currently, the obligation to determine whether a third party is involved in a transaction relates to Large Cash Transactions.  The proposed changes would include the obligation to make a third party determination for all EFTs of $10,000 or more.  This would also require similar record keeping obligations as a third party determination under the current Large Cash Transaction records.

Suspicious Transaction Reporting

Currently, if a reporting entity has reasonable grounds to suspect that a transaction or attempted transaction is related to money laundering or terrorist financing, a report must be submitted to FINTRAC within 30 days of the date that a fact was discovered that caused the suspicion. This change appeared in the last round of amendments that came into force last year, and the proposed new wording would be another significant change:

The person or entity shall send the report to the Centre within three days after the day on which measures taken by them enable them to establish that there are reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist activity financing offence.

This means that a report would be due three days after the reporting entity conducts an investigation or does something that allows them to reach the conclusion that there are reasonable grounds to suspect.

Information Included In Reports to FINTRAC

Certain information is required in reports to FINTRAC. Even where information is marked as being optional, if a reporting entity has the information, it becomes mandatory to include it. Some of the additional proposed data fields are:

  • every reference number that is connected to the transaction,
  • type of device used by person who makes request online,
  • number that identifies device,
  • internet protocol address (IP address) used by device,
  • person’s user name, and
  • date and time of person’s online session in which request is made.

These fields may require significantly more data to be included in reports, especially for transactions that are conducted online.

Ongoing Compliance Training

Currently, there are five required elements of a Canadian AML compliance program, but there is soon to be a sixth.  Before you get too worried, it’s not that major.  The change is specific to your ongoing compliance training obligations, which says you must institute and document a plan for your ongoing compliance training program and the delivery of the training.  Basically, in your AML compliance program documentation, you need to provide a description of your training program for at least the next year and how the training will be delivered. Many MSBs have already implemented this best practice.

Risk Assessment Obligations

With the recent addition of the “New Technologies and Developments” category to the Risk-Based Approach requirements, the next logical progression has be added.  The updates include the obligation to assess the money laundering and terrorist financing risk of any new technology before implementation.  Meaning, if you are looking to take your business online and are going to use this fancy, new non-face-to-face ID system, you had better take careful inventory of where your risks are and be sure the appropriate controls have been put in place before going live. Much like the training plan, many MSBs have already implemented this best practice.

Virtual Currency

The draft updates also include major changes related to virtual currency. “Dealers in virtual currencies’ would be regulated as MSBs. New record keeping and reporting obligations would apply to all reporting entities that accept payment in virtual currency, or send virtual currency on behalf of their customers.

For more information on updates specific to virtual currency, please check out our full article.

What Next

If you’ve read this far, congratulations and thank you!

We hope that you will contribute your thoughts and comments. You can do this by contacting the Department of Finance directly. Their representative on this file is:

Lynn Hemmings

Acting Director General

Financial Systems Division

Financial Sector Policy Branch

Department of Finance

90 Elgin Street

Ottawa, Ontario

K1A 0G5

Email: fin.fc-cf.fin@canada.ca

If you would like assistance drafting a submission, or have questions that you would like Outlier to answer, please get in touch!

If you are interested in sharing your comments with the Canadian MSB Association (and we highly encourage you to do so) please email luisa@global-currency.com. She will have more information on the industry group’s submission and consultation process.

Would You Recognize Real Estate Red Flags?

Rodney_FINTRACOn November 14th, 2016 FINTRAC released a brief for all reporting entities who may be involved in real estate transactions.  The briefing is intended as guidance to provide some examples of indicators that may be present in transactions that may suggest they are linked to money laundering or terrorist financing.  The indicators described have been taken from transactions suspected of being related to money laundering or terrorist financing reported internationally.  The briefing focuses on the potential risks and vulnerabilities within the real estate industry and provides suggestions on how to ensure reporting entities are sufficiently meeting suspicious transaction reporting obligations.

The briefing is meant to provide operational guidance given the small overall number of suspicious transactions that have been reported to FINTRAC by the Real Estate industry.  The briefing states that these indicators will be used by FINTRAC to assess compliance with your reporting obligations.  If you are a reporting entity that interacts with the real estate industry in one form or another, the indicators and scenarios outlined in this brief should be considered when updating your Risk Assessment and training materials.

To put things into perspective, though the actual size of the real estate market is difficult to determine precisely, CMHC has produced some statistics.  CMHC suggests that between 2003 and 2013 over $9 trillion of mortgage credits were negotiated and roughly 5 million sales took place through Multiple Listing Services (MLS).  In contrast, FINTRAC received only 127 Suspicious Transactions Reports (STRs) from real estate brokers, agents and developers and 152 by other types of reporting entities, such as banks and trust/loan companies.  To go a step further, in FINTRAC’s 2015 Annual Report, between April 1, 2014 and March 31, 2015, a total of 92,531 STRs were filed across all reporting entities.

 

re-strs-filed-vs-sales

This evidence supports FINTRAC’s assertion that operational guidance for the real estate industry is needed.

The indicators and examples covered in the brief outline numerous scenarios that may suggest that a transaction is related to a money laundering or terrorist financing offense.  It also speaks to how the appearance of legitimacy obfuscates the clarity of suspicious transactions and requires more than a just “gut feel”.  What is required is the consideration of the facts related to the transaction and their context.  Does the transaction with all the known factors, positive or negative, make sense?

 

What This Means to Your Business? 

First off, FINTRAC will be using the indicators provided to assess your compliance with reporting obligations.  This has a couple different applications.  The first being, does your AML compliance program documentation make reference to the suspicious indicators that are provided.  Basically, are staff aware of the elements that may be present in a transaction that would suggest money laundering or terrorist financing may be occurring?

Secondly, is there an oversight process to ensure if there are transactions that contain one or more of these indicators where an STR was not submitted, is reviewed?  If so, does the process ensure supporting evidence that the Compliance Officer reviewed the transaction and determined there were not reasonable grounds to suspect its relation to money laundering or terrorist financing?  When you encounter a transaction involving any of the indicators provided, it is very important that you collect as much information as possible to assist the Compliance Officer with their determination of whether there are reasonable grounds to suspect that a transaction, or attempted transaction, may be related to money laundering or terrorist financing.  Alternatively, even if none of the indicators provided by FINTRAC are present but we still feel there is “something off” about our customer’s transaction, speak with your Compliance Officer.  They will be able to provide some insight on additional information that may assist our decision.  Once you have collected any additional information you may still not feel comfortable, but this does not mean you cannot complete the transaction, but that you must be sure your Compliance Officer is provided with all the information, which includes our reason for the escalation, so that they can decide whether there are reasonable grounds to suspect it may be related to a money laundering or terrorist financing offense.  The Compliance Officer will document their decision and, if necessary, submit an STR to FINTRAC.

Need a Hand?

If you are a reporting entity that interacts with the real estate industry and would like assistance updating your AML compliance program documentation or simply have some questions, please contact us.

Sanctions This Week: July 25th – 29th, 2016

 

OSFISanctions Pic

There were no updates released from OSFI this week.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released four updates last week.  One update was related to the publication of Cuba-related Frequently Asked Questions (FAQ), covering some of the recent changes made to the sanctions that had previously been placed on Cuba.  Other updates included the removal of 12 individuals from the Counter Terrorism Designations List, the issuance of a Finding of Violation and the publication of Iran General License J.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.

The update to the Cuba-related FAQs was for the issuance of a new FAQ (#38) and a revision of an existing FAQ (#39), relating to certain information collection and recordkeeping requirements for persons subject to U.S. jurisdiction who provide authorized carrier or travel services to or from Cuba for specifically licensed travelers.

The update to the Counter Terrorism Designations List included the removal of 12 individuals of Libyan origin who are currently residing in the UK.

The Finding of Violation was issued to Compass Bank, which uses the trade name BBVA Compass, for violations of the Foreign Narcotics Kingpin Sanctions Regulations. From June 12, 2013 to June 3, 2014, Compass maintained accounts on behalf of two individuals on OFAC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”).

The final update of the week was related to OFAC issuing “General License J”, authorizing the re-exportation of certain civil aircraft to Iran on temporary sojourn and related transactions.

See the Cuba-related FAQ update on OFAC’s website.

See the Counter Terrorism Designations List update on OFAC’s website.

See the issuance of a Finding of Violation to Compass Bank on OFAC’s website.

See the Iran General License J details on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: June 27th – July 1st, 2016

Sanctions Pic

OSFI

On June 27th, 2016, the Office of the Superintendent of Financial Institutions (OSFI) released two updates to the United Nations Security Council’s (UNSC’s) Al-Qaida and Taliban regulations sanctions list, amending 8 individuals and 1 entity.

The individuals are subject to the assets freeze, travel ban and arms embargo set out in paragraph 2 of Security Council resolution 2253 (2015) adopted under Chapter VII of the Charter of the United Nations.

All of the individuals are of different nationalities, but all have connections to Al-Qaida and French terrorist groups.  Some of the individuals have been detained and are currently serving out sentences.  Where others have arrest warrants issued by France, which are currently outstanding.

Go to the OSFI UNAQTR update on the OSFI page.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released three updates last week.  One update was related to the Counter Terrorist Designations list.  The second update was the publication of new Panama-related and Kingpin Act General Licenses and related Frequently Asked Questions (FAQ). The FAQ update is related to recent adjustments made to the sanctions placed on Panama.

OFAC also released the details about the implementation of the Federal Civil Penalties Inflation Adjustment Act, where penalties related to AML failings have increased 150%, the allowable maximum.  The adjustment to the base fine of USD 11,000, has now increased to USD 27,500.  This is based off the Consumer Price Index, and if you are curious about the actual math, see the image below:

OFAC CMP Calculation

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.  The changes to the Counter Terrorism Designations list included the removal of 11 Somali and Djibouti nationals.  The update also included the addition of one individual of Indian nationality with ties to the entity added, which is a section of Al-Qaida operating within India.

See the Counter Terrorism Designations List update on OFAC’s website.

See the Kingpin Act/Panama-related General Licenses and FAQs update on OFAC’s website.

See the Implementation of the Federal Civil Penalties Inflation Adjustment Act update on OFAC’s website.

See OFAC’s Recent Actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: June 20th – 26th, 2016

 

OSFIOutlier3_032

On June 20th, 2016, the Office of the Superintendent of Financial Institutions (OSFI) released the United Nations Security Council’s (UNSC’s) Al-Qaida and Taliban Regulations (UNAQTR) update to the sanctions list, removing one individual.

The assets freeze, travel ban and arms embargo, set out in paragraph 2 of Security Council resolution 2253 (2015), no longer apply to the individual.  The review pursuant to Security Council resolution 1822 (2008) was concluded on July 30th, 2009, which is almost seven years ago.  For further information about the process for removing individuals and entities from the UNAQTR List, pursuant to a decision by the UN Security Council Committee, may be found in the “Press Releases” section on the Committee’s website.

Go to OSFI’s release of the UNAQTR update on the OSFI page.

Go to the United Nations Security Council Committee’s page on “Delisting”.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released two updates last week.  One update involved the agreement to to settle potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations.  The second update was the addition of a single individual to the Democratic Republic of the Congo Designations list.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.

The OFAC penalty settlement amount for violations of the Iranian Transactions and Sanctions Regulations was $107,691.30 USD.  The stated violations are as follows:

  • On or about April 15, 2011, the company appeared to have violated the Regulations when it exported 3,600 medical products to its United Arab Emirates distributor with knowledge, or reason to know, that the goods were ultimately destined for Iran; and
  • Additionally, on or about May 27, 2011, the company exported an additional 400 units of the same product to its United Arab Emirates distributor with knowledge, or reason to know, that the goods were ultimately destined for Iran.

OFAC determined that the company voluntarily self-disclosed the apparent violations, and that the company constitutes a non-egregious case. The statutory maximum civil monetary penalty amount for the apparent violations was $1,129,912 USD and the base civil monetary penalty was $159,542.  The settlement amount reflects OFAC’s consideration of the following factors:

  • The company acted willfully by exporting products to its foreign distributor with knowledge, or reason to know, that the exports were ultimately destined for Iran in apparent violation of U.S. law, editing its destination control statement at the request of its distributor, and continuing to conduct business with its distributor after receiving confirmation that the distributor had re-exported the products to Iran;
  • The company’s former CEO and former International Sales Manager knew that the exports were ultimately destined for Iran; and
  • The company did not have a sanctions compliance program in place at the time of the apparent violations.

The company took remedial steps, including the implementation of an OFAC compliance program; and cooperated with OFAC’s investigation and agreed to toll the statute of limitations for a total of 513 days.

See the Enforcement Action Report on OFAC’s website.

See the Democratic Republic of the Congo updates on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: June 6th – 12th, 2016

OSFISanctions Pic

There were no updates released from OSFI this week.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released two updates to five sanction lists last week.  The updates, include the following:

  • Release of the 2015 Terrorist Assets Report;
  • Iran-related FAQ;
  • Counter Terrorism Designation;
  • Termination of the OFAC Fax-on-Demand Service; and
  • Kingpin Act/Honduras and Kingpin Act/Panama-related General Licenses and FAQ.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.

The 2015 Terrorist Assets Report is theTwenty-fourth Annual Report to the Congress on Assets in the United States Relating to Terrorist Countries and International Terrorism Program Designees.  This report cites a number of sanctions-related authorities including executive orders.  All of the legal materials cited in this report may be found in the legal section of OFAC’s website.

The Iran-related FAQ was adding two FAQs related to Financial and Banking Measures  and nine FAQs related to Foreign Entities Owned or Controlled by U.S. Persons.  OFAC added these FAQs to provide further clarity on the scope of the sanctions lifting that occurred on Implementation Day of the Joint Comprehensive Plan of Action (JCPOA).

The Counter Terrorism Designation list update was related to a single entity, Yarmouk Martyrs Brigade, who are known to be operating in Syria.

The termination of the OFAC Fax-on-Demand services was due to a lack of user demand for the service which is effective Friday, June 10, 2016.  General information pertaining to sanctions programs will remain publicly available on OFAC’s website.

The recently published update and FAQ to the Kingpin Act General Licenses, included four new General Licenses related to:

  • General License 1B – Authorizing certain transactions and activities to liquidate and wind down Banco Continental, S.A.;
  • General License 4B – Authorizing certain transactions involving individuals or entities located in the Panamanian Mall and associated complex, Soho Panama, S.A. (a.k.a. Soho Mall Panama);
  • General License 5A – Authorizing certain transactions and activities related to the Panamanian seizure of Balboa Bank & Trust; and
  • General License 6A – Authorizing certain transactions and activities related to the Panamanian intervention in Balboa Securities, Corp.

These General Licenses authorize certain transactions and activities that would otherwise be prohibited pursuant to the Kingpin Act.  OFAC also amended four FAQs related to the above licenses.

See the 2015 Terrorist Assets Report on OFAC’s website.

See the Iran-related FAQ updates on OFAC’s website.

See the Counter Terrorism Designations list update on OFAC’s website.

See the termination of OFAC’s Fax-on-Demand service information on OFAC’s website.

See the Kingpin Act/Honduras and Kingpin Act/Panama-related General Licenses and FAQs update on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: May 30th-June 5th, 2016

 

OSFISanctions Pic

There were no updates released from OSFI this week.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released two updates to five sanction lists last week.  The lists that were updated, include the following:

  • Burundi Sanctions Designations;
  • Kingpin Act Designations;
  • Kingpin Act/Panama-related General License; and
  • A Statement on the Felix Maduro Group.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.

The Burundi Sanctions Designations update included three military individuals, who were added.  These individuals are all high ranking military officers who are currently serving.

The Kingpin Act Designations update, included the removal of a single Panamanian entity.  No details were provided about the reasoning for the removal.

The Kingpin Act/Panama-related General License update, covered the maintenance of certain operations within the country.  Much like the previous related updated, the information provided details how to deal with listed Panamanian individuals and entities included in the General Licenses.  However, this iteration referred to the maintenance of La Estrella and El Siglo Newspapers.

The statement on the Felix Maduro Group, is related to OFAC’s designation of Waked Money Laundering Organization and their shared ownership.  However, based on consultations with, and actions undertaken by, the Government of Panama, OFAC understands that the Government of Panama is working to sever the SDNTs’ ownership and control of the Felix Maduro Group, in an effort to protect the Panamanian and U.S. financial systems from abuse.  The statement further clarifies the persons and transactions that would require authorization.

See the Burundi Sanctions Designations updates on OFAC’s website.

See the Kingpin Act Designations list updates on OFAC’s website.

See the Kingpin Act/Panama-related General License updates on OFAC’s website.

See the Statement on the Felix Maduro Group on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: May 9th-15th, 2016

OSFISanctions Pic

There were no updates released from OSFI this week.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released two updates to five sanction lists last week.  The lists that were updated, include the following:

  • Kingpin Act Designations;
  • Counter Narcotics Designations;
  • Libya-related Designations;
  • Panama-related and Kingpin Act General Licenses; and
  • An FAQ related to the Panama-related and Kingpin Act General Licenses.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.

The Kingpin Act and Counter Terrorism Designations updates included, the addition of a single individual (Kingpin Act), who is related to a previous listing, as well as two changes to current listings (Counter Terrorism), based on new information that came to light.

The Libya-related Designation list update included, the addition of a single individual.  The person appended to the list, is the current President and Speaker of the Libyan House of Representatives.

The Panama-related and Kingpin Act General License and FAQ update, covered certain transactions, related to the maintenance of operations within the country.  Specifically, how to deal with listed Panamanian individuals and entities listed in the General Licenses, and called out specific references to the
Soho Mall Panama and Balboa Bank & Trust.  The update follows last week’s release of the FAQ, based on feedback received.

See the Counter Narcotics and Kingpin Act Designation updates on OFAC’s website.

See the Libya-related Designation list updates on OFAC’s website.

See the Panama-related and Kingpin Act General License and FAQ updates on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: May 2nd-8th, 2016

 

OSFIOutlier3_032

There were no updates released from OSFI this week.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released two updates to five sanction lists last week.  The lists that were updated, include the following:

  • Counter Narcotics Designations;
  • Panama-related General Licenses;
  • Panama-related and Kingpin Act FAQ;
  • Kingpin Act Designations; and
  • Counter Terrorism Designations.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.

The changes made to the Counter Narcotics and Kingpin Act Designation lists, all surrounded Colombian nationals and entities.  The update contained the removal of numerous construction companies based in Bogota, and added numerous entities and individuals, who were all Medellin-based.

The Panama-related updates and FAQ release, covered the maintenance of certain operations within the country.  Specifically, how to deal with listed Panamanian individuals and entities, including forms and authorizations that are required prior to any transactions being conducted.  The update adds numerous names, all of whom are currently operating in Panama, which includes companies, such as “Waked Money Laundering Organization.”

See the Counter Narcotics and Kingpin Act Designation updates on OFAC’s website.

See the Panama-related, Counter Terrorism and Kingpin Act Designation updates on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

Sanctions This Week: April 25th – May 1st, 2016

OSFIOutlier3_032

There were no updates released from OSFI this week.

Go to the OSFI lists page.

OFAC

The U.S. Department of Treasury’s Branch, The Office of Foreign Asset Control (OFAC), released one update to the Belarus-related Executive Order (EO) 13405 sanction list last week.  The original list was replaced and superseded by the new version, which was effective October 30th, 2015.  The EO names nine (9) entities, who are undermining the democratic processes or institutions in Belarus, as well as any entity or individual who directly, or indirectly, owns or controls 50% or more of the listed entities.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.  The sanctions target countries, regimes, terrorists, international narcotics traffickers, the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the U.S.  The changes to the Belarus-related EO require any U.S. person(s) engaging in transactions involving, directly or indirectly, any of the entities described above, no later than 30 days after the execution of any such transaction in excess of $50,000, or any series of such transactions exceeding $50,000, to file a report with the U.S. Department of State, Office of Eastern European Affairs.  Reports to be filed, must include:

  • The estimated or actual dollar value of the transaction(s), as determined by the value of the goods, services, or contract;
  • The parties involved;
  • The type and scope of activities conducted; and
  • The dates or duration of the activities.

See the Belarus-related Executive Order update on OFAC’s website.

See OFAC’s recent actions page.

Need A Hand?

We would love to hear from you.  If there are subjects in this post that you would like to know more about, or if you need assistance with your compliance program, please contact us.

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