On January 1, 2021, the Senate followed the House and voted to override President Trump’s veto of the National Defense Authorization Act for Fiscal Year 2021 (NDAA). As is typical, the NDAA touched on a wide range of legal areas, including numerous new government contracts requirements, as well as a number of sanctions and export
U.S. Bans Imports from China Cotton Producer XPCC: How will CBP Enforce WRO?
On November 30, 2020, the U.S. Customs and Border Protection (“CBP”) placed all cotton and cotton products from Xinjiang Production and Construction Corporation (“XPCC”) and its subordinate and affiliated entities on the Withhold Release Orders (“WRO”) list. XPCC is a Chinese state-owned enterprise (“SOE”) which produces around 17 percent of the Xinjiang’s cotton and
OFAC Targets Iran’s Financial Sector and Designates Additional Iranian Banks
On October 8, 2020, the Treasury Department’s Office of Foreign Assets Control (OFAC) took a long-rumored final step in curtailing virtually all non-humanitarian financial flows with Iran, identifying the Iranian “financial sector” as a target for potential “secondary” sanctions designation, and simultaneously designating eighteen Iranian financial institutions, many of which had been the only
OFAC and FinCEN Release Advisories on Risks of Ransomware Payments
On October 1, 2020, the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) each released advisories (the OFAC Advisory and the FinCEN Advisory) addressing financial crime-related risks associated with ransomware and ransomware payments. The OFAC Advisory focuses on the risk that ransomware attacks or payments may involve sanctioned persons
FinCEN Issues ANPRM Seeking Comment on Requirement for an “Effective and Reasonably Designed” AML Program
On September 16, 2020, the Financial Crimes Enforcement Network (“FinCEN”) issued an advanced notice of rulemaking (“ANPRM”) requesting comments on proposed regulatory changes under the Bank Secrecy Act (“BSA”) that aim to enhance the effectiveness of anti-money laundering (“AML”) programs. The proposals reflect the recommendations of a working group within the Bank Secrecy Act Advisory
Recent FinCEN Advisories on Medical and Consumer Fraud Scams Related to the COVID-19 Pandemic
The Financial Crimes Enforcement Network (FinCEN) has issued two advisories to alert financial institutions to scams related to the COVID-19 pandemic, and has stated that it intends to continue to issue similar alerts. The advisories, based on FinCEN’s analysis of COVID-19-related information obtained through Bank Secrecy Act (BSA) data, public reports, and law enforcement partners
FinCEN Issues Alert to Financial Institutions Regarding Scam Involving Twitter
On July 16, 2020, the Financial Crimes Enforcement Network (FinCEN) issued an alert to financial institutions emphasizing a recent scam exploiting Twitter accounts to fraudulently solicit virtual currency payments. The cyber threat actors involved in the scam compromised accounts of various public figures, organizations, and financial institutions in an attempt to solicit virtual currency payments
Creation of a New Hong Kong-Related Sanctions Program
On July 14th, President Trump signed into law the Hong Kong Autonomy Act (the “Act”) that Congress unanimously passed earlier this month, and simultaneously issued an as-yet-unnumbered Executive Order (the “HK EO”) that implements many of its provisions. These actions follow the June 30th imposition by the government of the People’s Republic of China (“China”)
FinCEN Provides Additional Guidance for Financial Institutions on Hemp-Related Businesses
On June 29, 2020, the Financial Crimes Enforcement Network (FinCEN) issued helpful guidance on due diligence requirements for hemp-related businesses under the Bank Secrecy Act (BSA). The four-page guidance builds upon a December 3, 2019 joint statement on this topic issued by FinCEN, the Board of Governors of the Federal Reserve System, the Federal Deposit
NYDFS and OCC Announce Major Overhauls Important for Virtual Currency Businesses
The Office of the Comptroller of the Currency (OCC) and the New York Department of Financial Services (NYDFS) each recently took significant steps to address the key impediments for virtual currency (VC) companies in the U.S. First, on June 24, NYDFS announced significant updates to its approach on Bitlicenses, New York’s business license for VC