On 12 June 2019, FinCEN spoke on transparent beneficial ownership.
- FinCEN director Kenneth A. Blanco spoke at the NYU Law compliance program.
- Discussed need for corporate transparency, by disclosing beneficial ownership.
- FinCEN evolving efforts to modernize, and tackle a number of financial crimes.
- Various bad actors set up US shell companies to mask, further criminal activity.
- FinCEN customer due diligence rule, requires collection of beneficial ownership
information for legal entity when opening account at bank, financial institution.
- Need collection beneficial ownership information at corporate formation stages.
- Finding true owner of US shell company requires huge amount time, resources.
- Takes law enforcement, grand jury subpoenas, surveillance operations, witness
interviews, search warrants, and sometimes request of foreign legal assistance.
- FinCEN working with Congress to find way to address serious gap.
Modernize AML System
- FinCEN taking actions to modernize, joint statement to banks and credit unions
to take innovative approach, to prevent money laundering and terror financing.
- FinCEN innovation hours program, events showcase technologies.
- Catalog, disclose the value of BSA reporting, and revamp BSA advisory group.
- FinCEN exchange to share info among firms and law enforcement.
- Established the FinCEN director law enforcement awards program.
Approach to Evolving Threats
- Best way to deal with threats is to follow the money, expose activity, prevent
illicit networks from reaping benefit of power of economy or financial system.
- Practical steps to address virtual currency and cyber-enabled crimes, threats.
- FinCEN with the IRS, has launched supervisory exam of virtual currency MSBs.
- Working to combat rise business email compromise fraud (BEC).