_________________________________________________________
AML News / Relevant Information
May 21, 2012 - Release of OFAC Enforcement Information
Read Information
May 16, 2012 - US President signs an Executive Order (E.O.),
“Blocking Property of Persons Threatening the Peace, Security, or
Stability of Yemen.”
Read Executive Order
May 15, 2012 - FinCEN release SAR Activity Review-Trends, Tips &
Issues
Read Report
May 13, 2012 - OFAC has updated its Comprehensive Guidelines for
License Applications to Engage in Travel-Related Transactions Involving
Cuba
Read Update
May 2, 2012 - US President signs an Executive Order (E.O.),
“Prohibiting Certain Transactions with and Suspending Entry into the
United States of Foreign Sanctions Evaders with Respect to Iran and
Syria,” providing the U.S. Treasury Department with a new authority to
tighten further the U.S. sanctions on Iran and Syria.
Read Executive Order
April 27, 2012 - The Office of Foreign Assets Control has issued
General License 4A, which authorizes the exports or reexports to Syria
of items licensed or otherwise authorized by the Department of
Commerce and of exports and reexports of certain services. General
License 4A replaces and supersedes General License 4, dated August
18, 2011.
Read License
April 23, 2012 - Executive order blocking the property and suspending
entry into the United States of certain persons with respect to grave
human rights abuses by the governments of Iran and Syria via
information technology
Read Executive Order
April 17, 2012 - the Office of Foreign Assets Control issued General
License No. 14-C pursuant to the Burmese Sanctions Regulations, 31
CFR Part 537, authorizing certain financial transactions in support of
humanitarian, religious, and other not-for-profit activities in Burma.
Read More
19 December 2011 - the EU Council implemented Regulation No
1345/2011 renewing and strengthening the restrictive measures in
respect of Burma/Myanmar implemented in Regulation (EC) No 194/2008
Read More
April 2, 2012 - Guidance to Filing FinCEN's new Currency Transaction
Report and Suspicious Activity Report
Read More
March 20, 2012 - OFAC release Iranian Transactions Regulations
Amendment
Read More
March 20, 2012 - OFAC release Publication of Statement of Licensing
Policy on Internet Freedom In Iran
Read More
March 14, 2012 - OFAC has released its Calendar Year 2011 Annual
Report on Assets in the United States of Terrorist Countries and
International Terrorism Program Designees.
Read Report
March 1, 2012 - OFAC has updated its list of Cuba Travel and Carrier
Service Providers and Remittance Forwarders.
Read More
February 27, 2012 - OFAC amends the Iranian Financial Sanctions
Regulations, 31 C.F.R. part 561 (the "IFSR"), and republishes them in
their entirety, to implement subsection 1245(d) of the National Defense
Authorization Act for Fiscal Year 2012 ("NDAA")
Read More
February 26, 2012 - Guidance to Financial Institutions on Providing
Financial Services to Foreign-Located MSBs
Read More
February 24, 2012 - OFAC has issued General License 15 related to
Syria to authorize transactions in connection with patent, trademark,
copyright, or other intellectual property protection that would otherwise
be prohibited by Executive Order 13582.
Read General Licence
February 24, 2012 - OFAC is amending General License No. 5a and
reissuing the general license under the Weapons of Mass Destruction
Proliferators Sanctions Regulations, 31 C.F.R. Part 544; the Iranian
Transactions Regulations, 31 C.F.R. Part 560; and Executive Order
13599, in order to authorize certain transactions related to the arrest,
detention, and judicial sale of the MV Dianthe (f.k.a. Horsham, f.k.a. Iran
Bam, IMO No. 9323833), which is a vessel on OFAC’s Specially
Designated Nationals and Blocked Persons list.
Read General Licence
February 22, 2012 - Release of Civil Penalties Information
Read more
February 16, 2012 - OFAC has updated its list of Cuba Travel and
Carrier Service Providers and Remittance Forwarders
Read More
February 15, 2012 - The US Treasury Department and the Internal
Revenue Service today issued proposed regulations for the next major
phase of implementing the Foreign Account Tax Compliance Act
(FATCA).
Read More
February 15, 2012 - US Treasury Issues Guidance Concerning
National Defense Authorization Act Sanctions on Iran
Read Guidance
February 12, 2012 - The US President signs Executive Order Blocking
the Property and Interests in Property of the Government of Iran and
Iranian Financial Institutions
Read more
February 1, 2012 - Countering Terrorist Extremism - Remarks by Daniel
Benjamin Coordinator, Office of the Coordinator for Counterterrorism, US
Department of State
Read More
January 15, 2012 - OFAC has updated its notice regarding the
implementation of certain sanctions under the Iran Sanctions Act of 1996
Read Notice
January 8, 2012 - FinCEN Issues Annual Report for FY 2011
View report (pdf file)
November 22, 2012 - US Dept of the Treasury Finding that the Islamic
Republic of Iran is a Jurisdiction of Primary Money Laundering
Concern (as submitted to the Federal Register)
Read Notice of Findings
November 22, 2012 - US Dept of the Treasury Imposition of Special
Measure against the Islamic Republic of Iran as a Jurisdiction of
Primary Money Laundering Concern (as submitted to the Federal
Register)
Read Notice of Proposed Rulemaking
November 21, 2012 - FINRA's automated search tool to check names
in all OFAC Sanctions Program Listings is now available.
Click here to visit our new Sanction List Search Tools web page for link
November 9, 2011 - FinCEN Proposes Anti-Money
Laundering/Suspicious Activity Reporting Rules for Fannie Mae, Freddie
Mac, Federal Home Loan Banks
Read More
October 13, 2012 - FinCEN releases October 2011 SAR Activity Review
Trends, Tips and Issues
Read Review (pdf file)
October 7, 2011 - The U.S. Department of the Treasury's Financial
Crimes Enforcement Network (FinCEN) delivered to the Federal Register
a final rule to implement section 104(e) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (CISADA) to
complement Treasury's ongoing efforts to protect the international
financial system from abuse by Iran.
Read Final Rule
September 27, 2012 - USA (OFAC) issues General Licence 12 on
Syria re authorization of third-country diplomatic and consular funds
transfers
June 26, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks and implementation re exchange of information is made
available.
Read Report
Links:
Financial Crimes Enforcement Network (FinCEN)
Worldwide AML Legislation (International Bar Association)
AML News / Relevant Information
May 21, 2012 - Release of OFAC Enforcement Information
Read Information
May 16, 2012 - US President signs an Executive Order (E.O.),
“Blocking Property of Persons Threatening the Peace, Security, or
Stability of Yemen.”
Read Executive Order
May 15, 2012 - FinCEN release SAR Activity Review-Trends, Tips &
Issues
Read Report
May 13, 2012 - OFAC has updated its Comprehensive Guidelines for
License Applications to Engage in Travel-Related Transactions Involving
Cuba
Read Update
May 2, 2012 - US President signs an Executive Order (E.O.),
“Prohibiting Certain Transactions with and Suspending Entry into the
United States of Foreign Sanctions Evaders with Respect to Iran and
Syria,” providing the U.S. Treasury Department with a new authority to
tighten further the U.S. sanctions on Iran and Syria.
Read Executive Order
April 27, 2012 - The Office of Foreign Assets Control has issued
General License 4A, which authorizes the exports or reexports to Syria
of items licensed or otherwise authorized by the Department of
Commerce and of exports and reexports of certain services. General
License 4A replaces and supersedes General License 4, dated August
18, 2011.
Read License
April 23, 2012 - Executive order blocking the property and suspending
entry into the United States of certain persons with respect to grave
human rights abuses by the governments of Iran and Syria via
information technology
Read Executive Order
April 17, 2012 - the Office of Foreign Assets Control issued General
License No. 14-C pursuant to the Burmese Sanctions Regulations, 31
CFR Part 537, authorizing certain financial transactions in support of
humanitarian, religious, and other not-for-profit activities in Burma.
Read More
19 December 2011 - the EU Council implemented Regulation No
1345/2011 renewing and strengthening the restrictive measures in
respect of Burma/Myanmar implemented in Regulation (EC) No 194/2008
Read More
April 2, 2012 - Guidance to Filing FinCEN's new Currency Transaction
Report and Suspicious Activity Report
Read More
March 20, 2012 - OFAC release Iranian Transactions Regulations
Amendment
Read More
March 20, 2012 - OFAC release Publication of Statement of Licensing
Policy on Internet Freedom In Iran
Read More
March 14, 2012 - OFAC has released its Calendar Year 2011 Annual
Report on Assets in the United States of Terrorist Countries and
International Terrorism Program Designees.
Read Report
March 1, 2012 - OFAC has updated its list of Cuba Travel and Carrier
Service Providers and Remittance Forwarders.
Read More
February 27, 2012 - OFAC amends the Iranian Financial Sanctions
Regulations, 31 C.F.R. part 561 (the "IFSR"), and republishes them in
their entirety, to implement subsection 1245(d) of the National Defense
Authorization Act for Fiscal Year 2012 ("NDAA")
Read More
February 26, 2012 - Guidance to Financial Institutions on Providing
Financial Services to Foreign-Located MSBs
Read More
February 24, 2012 - OFAC has issued General License 15 related to
Syria to authorize transactions in connection with patent, trademark,
copyright, or other intellectual property protection that would otherwise
be prohibited by Executive Order 13582.
Read General Licence
February 24, 2012 - OFAC is amending General License No. 5a and
reissuing the general license under the Weapons of Mass Destruction
Proliferators Sanctions Regulations, 31 C.F.R. Part 544; the Iranian
Transactions Regulations, 31 C.F.R. Part 560; and Executive Order
13599, in order to authorize certain transactions related to the arrest,
detention, and judicial sale of the MV Dianthe (f.k.a. Horsham, f.k.a. Iran
Bam, IMO No. 9323833), which is a vessel on OFAC’s Specially
Designated Nationals and Blocked Persons list.
Read General Licence
February 22, 2012 - Release of Civil Penalties Information
Read more
February 16, 2012 - OFAC has updated its list of Cuba Travel and
Carrier Service Providers and Remittance Forwarders
Read More
February 15, 2012 - The US Treasury Department and the Internal
Revenue Service today issued proposed regulations for the next major
phase of implementing the Foreign Account Tax Compliance Act
(FATCA).
Read More
February 15, 2012 - US Treasury Issues Guidance Concerning
National Defense Authorization Act Sanctions on Iran
Read Guidance
February 12, 2012 - The US President signs Executive Order Blocking
the Property and Interests in Property of the Government of Iran and
Iranian Financial Institutions
Read more
February 1, 2012 - Countering Terrorist Extremism - Remarks by Daniel
Benjamin Coordinator, Office of the Coordinator for Counterterrorism, US
Department of State
Read More
January 15, 2012 - OFAC has updated its notice regarding the
implementation of certain sanctions under the Iran Sanctions Act of 1996
Read Notice
January 8, 2012 - FinCEN Issues Annual Report for FY 2011
View report (pdf file)
November 22, 2012 - US Dept of the Treasury Finding that the Islamic
Republic of Iran is a Jurisdiction of Primary Money Laundering
Concern (as submitted to the Federal Register)
Read Notice of Findings
November 22, 2012 - US Dept of the Treasury Imposition of Special
Measure against the Islamic Republic of Iran as a Jurisdiction of
Primary Money Laundering Concern (as submitted to the Federal
Register)
Read Notice of Proposed Rulemaking
November 21, 2012 - FINRA's automated search tool to check names
in all OFAC Sanctions Program Listings is now available.
Click here to visit our new Sanction List Search Tools web page for link
November 9, 2011 - FinCEN Proposes Anti-Money
Laundering/Suspicious Activity Reporting Rules for Fannie Mae, Freddie
Mac, Federal Home Loan Banks
Read More
October 13, 2012 - FinCEN releases October 2011 SAR Activity Review
Trends, Tips and Issues
Read Review (pdf file)
October 7, 2011 - The U.S. Department of the Treasury's Financial
Crimes Enforcement Network (FinCEN) delivered to the Federal Register
a final rule to implement section 104(e) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (CISADA) to
complement Treasury's ongoing efforts to protect the international
financial system from abuse by Iran.
Read Final Rule
September 27, 2012 - USA (OFAC) issues General Licence 12 on
Syria re authorization of third-country diplomatic and consular funds
transfers
June 26, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks and implementation re exchange of information is made
available.
Read Report
Links:
Financial Crimes Enforcement Network (FinCEN)
Worldwide AML Legislation (International Bar Association)
|
|
Sanctions:
The USA has autonomous sanction programmes in force against
several countries/regimes. For further information, please visit the
following link: -
http://www.treasury.gov/resource-
center/sanctions/Programs/Pages/Programs.aspx
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
There is no US State Department Money Laundering
Report available but in March, 2009, Senator Carl
Levinthe, Chairman of the U.S. Senate Permanent
Subcommittee on Investigations, released a 104-page
report by the Government Accountability Office (GAO)
providing an overview of the state of federal anti-money
laundering (AML) programs (below is a copy of the press
release giving a brief resume, together with a link to the
report):
“GAO’s report provides a snapshot of our existing anti-money
laundering programs to protect the U.S. financial system from
misuse by terrorists, criminals, and other wrongdoers,” said Levin.
“It shows that while AML programs in banking are far along,
programs for securities firms, commodity traders, and money
service businesses are only partially in place, while hedge funds
haven’t even begun. It also shows that, in recent years, fewer
AML exams have been completed and, as a result, AML
enforcement is down. As we restructure our financial system, we
need to include more effective AML protections and oversight to
safeguard our financial markets.”
The Subcommittee has held a number of hearings on AML issues
over the past ten years and, after the 9/11 attack, helped
strengthen U.S. AML laws in the Patriot Act of 2001. In 2004, the
Subcommittee released a report and held a hearing critical of
oversight efforts by federal banking regulators to ensure bank
compliance with the new AML requirements. Using Riggs Bank as
a case history, the Subcommittee showed that federal banking
regulators had repeatedly identified AML deficiencies at the bank
but failed to correct them. In response, federal banking regulators
strengthened their AML oversight efforts including by issuing a
joint AML examination manual, requiring prompt correction of AML
deficiencies, and improving tracking systems to determine
whether AML deficiencies had been corrected.
The GAO report, which was prepared at the Subcommittee’s
request, provides an overview of federal AML oversight as of
2008. It examines not only oversight of the banking sector, but
other financial sectors which, as a result of the Patriot Act, were
required for the first time to implement AML safeguards. These
financial sectors include businesses that handle substantial funds,
including securities and commodity firms, money service
businesses such as money transmitters and cash checking
companies, insurance firms, casinos, and others.
The GAO report explains that the Financial Crimes Enforcement
Network (FinCEN), a bureau within the Department of the
Treasury, provides general oversight of U.S. AML programs. GAO
states that FinCEN has a staff of about 300 persons, up from 175
in 2001, and an annual budget of $73 million, up from $38 million
in 2001. FinCEN is charged by Treasury with issuing regulations
under the key AML laws and enforcing compliance with those laws.
The report also explains that FinCEN has delegated primary AML
regulatory and examination authority to other federal agencies.
For example, FinCEN has delegated AML oversight of the banking
sector to the five federal banking agencies, the Federal Reserve,
Office of the Comptroller General (OCC), Federal Deposit
Insurance Corporation (FDIC), Office of Thrift Supervision (OTS),
and National Association of Credit Unions (NCUA). GAO states
they oversee about 16,600 banks, thrifts, and credit unions.
FinCEN has delegated AML oversight of securities firms to the
Securities and Exchange Commission (SEC) which has, in turn,
delegated day-to-day oversight of firms to the Financial Industry
Regulatory Agency (FINRA), a private industry organization
charged by the SEC with overseeing the securities markets. GAO
states they oversee over 5,500 broker-dealers and 680 mutual
funds.
FinCEN has delegated AML oversight of commodity firms to the
Commodity Futures Trading Commission (CFTC) which has, in
turn, delegated it to several private industry organizations
charged with overseeing the commodity markets, such as the
National Futures Association and Chicago Mercantile Exchange.
GAO states they oversee about 150 futures commission
merchants and 1,600 introducing brokers.
FinCEN has delegated AML oversight of all other types of covered
financial institutions, including money service businesses,
insurance companies, and casinos, to the Internal Revenue
Service (IRS). GAO states that the IRS oversees about 200,000
money service businesses, the largest group of financial
institutions assigned to the agency. GAO does not provide figures
for the other types of financial institutions overseen by the IRS.
The GAO report explains that FinCEN works with each of these
agencies to develop appropriate regulations, examination
standards, and enforcement actions to ensure U.S. financial
institutions comply with their AML obligations. Those obligations
include implementing written AML policies and procedures,
appointing an official to head the institution’s AML efforts,
providing AML training to personnel, and auditing AML
compliance. Most financial institutions are also required to file
suspicious activity reports with FinCEN.
Examination data provided in the GAO report shows that banking
institutions undergo a higher rate of AML examinations, compared
to other financial sectors. Data contained in GAO Report Tables 2-
6 and 10 shows, for example, that, of the 16,600 banking
institutions, about 10,000 received AML examinations in 2005,
and 9,400 received examinations in 2008, which means that more
than half underwent an AML examination. In contrast, of 5,500
broker-dealers, about 2,800 received AML examinations in 2007,
and about 2,600 received them in 2008. Of 680 mutual funds,
about 100 received AML examinations in 2007, and another 100
in 2008. Of the 150 commodity trading firms and 1,600
introducing brokers, about 320 received AML examinations in
2005, and about 200 received them in 2008. Of the more than
200,000 financial institutions overseen by the IRS, about 8,500
received AML examinations in 2007, while about 9,200 received
them in 2008.
These figures show that the number of AML examinations
performed by federal agencies other than the IRS has declined in
recent years, with a corresponding decrease in the number of
AML violations identified and enforcement actions taken. For
example, banking regulators took 49 formal and 6,500 informal
AML enforcement actions in 2006, but only 37 formal and 3,400
informal enforcement actions in 2008. Securities regulators took
34 formal AML enforcement actions in 2007, but only 25 in 2008.
Commodity regulators took 21 formal AML enforcement actions in
2006, but only 8 as in 2008 as of August 2008.
With respect to the IRS, the report explains that the IRS has no
independent AML enforcement authority and must refer cases to
FinCEN for enforcement. The report states that, from 2006 to
2008, the IRS referred about 50 cases to FinCEN for enforcement
action, without breaking down the referrals by year. In addition,
GAO states that, in 2008, FinCEN reported taking an average of
485 days, more than one year, to review referrals sent to its
Office of Enforcement. GAO does not specify how many
enforcement actions actually resulted from the IRS referrals. GAO
reports that FinCEN and the IRS have now accepted a GAO
recommendation to strengthen FinCEN procedures for handling
enforcement referrals.
The GAO report also identifies significant discrepancies among
the agencies in the number of examiners with AML expertise and
the frequency of AML examinations. Although all examiners
receive AML training, available data shows that, in 2008, over 450
banking examiners with specific AML expertise helped conduct
about 9,400 AML exams; about 30 SEC and FINRA examiners with
specific AML expertise helped conduct about 2,600 AML exams;
and about 385 IRS examiners conducted about 9,200 AML exams.
For commodities firms, the report states that no examiners are
dedicated solely to AML examinations, but about 200 examiners
have received AML training during the course of their duties. The
report also discloses that while bank and commodity examinations
are scheduled for every 9-18 months, examinations of securities
firms are required at least once every 4 years.
GAO reports further that, while banking and IRS examiners use
AML examination manuals which are available to the public,
securities and commodity examiners use examination manuals
which are not publicly available and cannot be discussed in a
public setting. The report does not provide any rationale for
keeping the manuals secret and points out the benefits of federal
regulators developing and applying consistent AML examination
standards across the financial sector.
“The deficiencies in our anti-money laundering programs do not
end with the problems identified in the GAO report,” said Levin.
“Two additional big problems are FinCEN’s failure to close the
hedge fund loophole that allows millions of unscreened offshore
dollars into the U.S. financial system, and FinCEN’s failure to meet
a 2008 deadline to bolster U.S. incorporation practices. Both are
problems that we can and should fix as part of our efforts to
strengthen U.S. financial regulation.”
Despite a 2001 Patriot Act requirement that all U.S. financial
institutions, including hedge funds and other securities and
commodity broker-dealers, adopt procedures to prevent terrorist
financing and money laundering, FinCEN has not taken the steps
needed to require those companies to set up AML programs. In
2006, as part of an investigation into offshore jurisdictions, the
Subcommittee showed how two U.S. citizens were injecting
millions of offshore dollars into the U.S. financial system through
two hedge funds they operated. A bipartisan Subcommittee staff
report recommended that FinCEN finalize a regulation, which
FinCEN had proposed four years earlier in 2002, to require those
companies to establish AML programs. Instead of finalizing the
regulation, however, FinCEN inexplicably withdrew it in 2008. In
the absence of that regulation, Levin has introduced legislation,
S. 506, to require hedge funds and other unregistered securities
and commodity dealers to set up AML programs.
A second problem not addressed in the GAO report involves U.S.
incorporation practices. Right now, states form about 2 million U.
S. corporations each year without knowing who is behind them, in
violation of an international AML standard requiring countries to
identify the beneficial owners of the corporations they form. In
2006, at a Subcommittee hearing on this issue, FinCEN testified
that it was considering proposing a regulation to require states to
identify the beneficial owners of the corporations formed under
their laws. At the time of the hearing, the United States was facing
a July 2008 deadline set by the leading AML international body,
the Financial Action Task Force on Money Laundering, to
strengthen its incorporation practices. FinCEN, however, never
proposed the regulation, the United States missed the deadline,
and it is now out of compliance with the international AML
standard. In the absence of any regulation issued by FinCEN on
this matter, Levin has introduced legislation, S. 569, to require
states to obtain beneficial ownership information for the
corporations they form.
Other portions of the GAO report show that FinCEN has taken
years to implement the stronger AML protections required by the
2001 Patriot Act. GAO points out, for example, that FinCEN took
years to conclude AML memorandums of understanding (MOUs)
with the key agencies. It signed an MOU with the banking
agencies in 2004, with the SEC and IRS in 2006, and with the
CFTC just two months ago in January 2009. GAO points out that
FinCEN took until 2006 to replace a paper-based system for
tracking case referrals with an electronic case management
system. GAO also highlights an ongoing problem with a FinCEN
policy that denies direct access to its database of suspicious
activity and currency reports for SEC and CFTC regulatory
organizations that employ private sector rather than government
personnel. GAO indicates that, by requiring these organizations
to go through the SEC and CFTC to obtain its data, FinCEN not
only creates delays, but places a strain on the two agencies that
have to forward the data. GAO recommends that FinCEN permit
direct access to its data.
GAO also recommends that all of the government agencies
involved with AML oversight create a nonpublic forum in which
they can discuss examination and enforcement issues.
The GAO report [GAO-09-227] can be found at: http://www.gao.
gov/new.items/d09227.pdf
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
The United States is a source, transit, and destination country for
men, women, and children subjected to forced labor, debt
bondage, document servitude, and sex trafficking. Trafficking
occurs for commercial sexual exploitation in street prostitution,
massage parlors, and brothels, and for labor in domestic service,
agriculture, manufacturing, janitorial services, hotel services,
hospitality industries, construction, health and elder care, and
strip club dancing. Vulnerabilities are increasingly found in visa
programs for legally documented students and temporary workers
who typically fill labor needs in the hospitality, landscaping,
construction, food service, and agricultural industries. There are
allegations of domestic workers, foreign nationals on A-3 and G-5
visas, subjected to forced labor by foreign diplomatic or consular
personnel posted to the United States. Combined federal and
state human trafficking information indicates more sex trafficking
than labor trafficking investigations and prosecutions, but law
enforcement identified a comparatively higher number of labor
trafficking victims as such cases uncovered recently have
involved more victims. U.S. citizen victims, both adults and
children, are predominantly found in sex trafficking; U.S. citizen
child victims are often runaways, troubled, and homeless youth.
Foreign victims are more often found in labor trafficking than sex
trafficking. In 2010, the number of female foreign victims of labor
trafficking served through victim services programs increased
compared with 2009. The top countries of origin for foreign victims
in FY 2010 were Thailand, India, Mexico, Philippines, Haiti,
Honduras, El Salvador, and the Dominican Republic.
The U.S. government fully complies with the minimum standards
for the elimination of trafficking. The government sustained strong
federal law enforcement efforts, strengthening support for federal
task forces and initiating efforts to improve coordination and
proactively identify cases. The government continued to provide
funding to NGOs for services to victims and identified an
increased number of victims. Immigration relief, which may lead to
residency and eventual citizenship, is offered to qualified victims
and immediate family members. The government sustained its
prevention efforts, continuing to examine federal procurement and
specific visa categories for vulnerabilities as well as to undertake
public awareness efforts. The U.S. government annually reports
on its activities to combat human trafficking in a report compiled
by the Department of Justice available at www.justice.
gov/ag/publications.htm including detailed information on funding
and suggestions for improved performance.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
The USA has autonomous sanction programmes in force against
several countries/regimes. For further information, please visit the
following link: -
http://www.treasury.gov/resource-
center/sanctions/Programs/Pages/Programs.aspx
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
There is no US State Department Money Laundering
Report available but in March, 2009, Senator Carl
Levinthe, Chairman of the U.S. Senate Permanent
Subcommittee on Investigations, released a 104-page
report by the Government Accountability Office (GAO)
providing an overview of the state of federal anti-money
laundering (AML) programs (below is a copy of the press
release giving a brief resume, together with a link to the
report):
“GAO’s report provides a snapshot of our existing anti-money
laundering programs to protect the U.S. financial system from
misuse by terrorists, criminals, and other wrongdoers,” said Levin.
“It shows that while AML programs in banking are far along,
programs for securities firms, commodity traders, and money
service businesses are only partially in place, while hedge funds
haven’t even begun. It also shows that, in recent years, fewer
AML exams have been completed and, as a result, AML
enforcement is down. As we restructure our financial system, we
need to include more effective AML protections and oversight to
safeguard our financial markets.”
The Subcommittee has held a number of hearings on AML issues
over the past ten years and, after the 9/11 attack, helped
strengthen U.S. AML laws in the Patriot Act of 2001. In 2004, the
Subcommittee released a report and held a hearing critical of
oversight efforts by federal banking regulators to ensure bank
compliance with the new AML requirements. Using Riggs Bank as
a case history, the Subcommittee showed that federal banking
regulators had repeatedly identified AML deficiencies at the bank
but failed to correct them. In response, federal banking regulators
strengthened their AML oversight efforts including by issuing a
joint AML examination manual, requiring prompt correction of AML
deficiencies, and improving tracking systems to determine
whether AML deficiencies had been corrected.
The GAO report, which was prepared at the Subcommittee’s
request, provides an overview of federal AML oversight as of
2008. It examines not only oversight of the banking sector, but
other financial sectors which, as a result of the Patriot Act, were
required for the first time to implement AML safeguards. These
financial sectors include businesses that handle substantial funds,
including securities and commodity firms, money service
businesses such as money transmitters and cash checking
companies, insurance firms, casinos, and others.
The GAO report explains that the Financial Crimes Enforcement
Network (FinCEN), a bureau within the Department of the
Treasury, provides general oversight of U.S. AML programs. GAO
states that FinCEN has a staff of about 300 persons, up from 175
in 2001, and an annual budget of $73 million, up from $38 million
in 2001. FinCEN is charged by Treasury with issuing regulations
under the key AML laws and enforcing compliance with those laws.
The report also explains that FinCEN has delegated primary AML
regulatory and examination authority to other federal agencies.
For example, FinCEN has delegated AML oversight of the banking
sector to the five federal banking agencies, the Federal Reserve,
Office of the Comptroller General (OCC), Federal Deposit
Insurance Corporation (FDIC), Office of Thrift Supervision (OTS),
and National Association of Credit Unions (NCUA). GAO states
they oversee about 16,600 banks, thrifts, and credit unions.
FinCEN has delegated AML oversight of securities firms to the
Securities and Exchange Commission (SEC) which has, in turn,
delegated day-to-day oversight of firms to the Financial Industry
Regulatory Agency (FINRA), a private industry organization
charged by the SEC with overseeing the securities markets. GAO
states they oversee over 5,500 broker-dealers and 680 mutual
funds.
FinCEN has delegated AML oversight of commodity firms to the
Commodity Futures Trading Commission (CFTC) which has, in
turn, delegated it to several private industry organizations
charged with overseeing the commodity markets, such as the
National Futures Association and Chicago Mercantile Exchange.
GAO states they oversee about 150 futures commission
merchants and 1,600 introducing brokers.
FinCEN has delegated AML oversight of all other types of covered
financial institutions, including money service businesses,
insurance companies, and casinos, to the Internal Revenue
Service (IRS). GAO states that the IRS oversees about 200,000
money service businesses, the largest group of financial
institutions assigned to the agency. GAO does not provide figures
for the other types of financial institutions overseen by the IRS.
The GAO report explains that FinCEN works with each of these
agencies to develop appropriate regulations, examination
standards, and enforcement actions to ensure U.S. financial
institutions comply with their AML obligations. Those obligations
include implementing written AML policies and procedures,
appointing an official to head the institution’s AML efforts,
providing AML training to personnel, and auditing AML
compliance. Most financial institutions are also required to file
suspicious activity reports with FinCEN.
Examination data provided in the GAO report shows that banking
institutions undergo a higher rate of AML examinations, compared
to other financial sectors. Data contained in GAO Report Tables 2-
6 and 10 shows, for example, that, of the 16,600 banking
institutions, about 10,000 received AML examinations in 2005,
and 9,400 received examinations in 2008, which means that more
than half underwent an AML examination. In contrast, of 5,500
broker-dealers, about 2,800 received AML examinations in 2007,
and about 2,600 received them in 2008. Of 680 mutual funds,
about 100 received AML examinations in 2007, and another 100
in 2008. Of the 150 commodity trading firms and 1,600
introducing brokers, about 320 received AML examinations in
2005, and about 200 received them in 2008. Of the more than
200,000 financial institutions overseen by the IRS, about 8,500
received AML examinations in 2007, while about 9,200 received
them in 2008.
These figures show that the number of AML examinations
performed by federal agencies other than the IRS has declined in
recent years, with a corresponding decrease in the number of
AML violations identified and enforcement actions taken. For
example, banking regulators took 49 formal and 6,500 informal
AML enforcement actions in 2006, but only 37 formal and 3,400
informal enforcement actions in 2008. Securities regulators took
34 formal AML enforcement actions in 2007, but only 25 in 2008.
Commodity regulators took 21 formal AML enforcement actions in
2006, but only 8 as in 2008 as of August 2008.
With respect to the IRS, the report explains that the IRS has no
independent AML enforcement authority and must refer cases to
FinCEN for enforcement. The report states that, from 2006 to
2008, the IRS referred about 50 cases to FinCEN for enforcement
action, without breaking down the referrals by year. In addition,
GAO states that, in 2008, FinCEN reported taking an average of
485 days, more than one year, to review referrals sent to its
Office of Enforcement. GAO does not specify how many
enforcement actions actually resulted from the IRS referrals. GAO
reports that FinCEN and the IRS have now accepted a GAO
recommendation to strengthen FinCEN procedures for handling
enforcement referrals.
The GAO report also identifies significant discrepancies among
the agencies in the number of examiners with AML expertise and
the frequency of AML examinations. Although all examiners
receive AML training, available data shows that, in 2008, over 450
banking examiners with specific AML expertise helped conduct
about 9,400 AML exams; about 30 SEC and FINRA examiners with
specific AML expertise helped conduct about 2,600 AML exams;
and about 385 IRS examiners conducted about 9,200 AML exams.
For commodities firms, the report states that no examiners are
dedicated solely to AML examinations, but about 200 examiners
have received AML training during the course of their duties. The
report also discloses that while bank and commodity examinations
are scheduled for every 9-18 months, examinations of securities
firms are required at least once every 4 years.
GAO reports further that, while banking and IRS examiners use
AML examination manuals which are available to the public,
securities and commodity examiners use examination manuals
which are not publicly available and cannot be discussed in a
public setting. The report does not provide any rationale for
keeping the manuals secret and points out the benefits of federal
regulators developing and applying consistent AML examination
standards across the financial sector.
“The deficiencies in our anti-money laundering programs do not
end with the problems identified in the GAO report,” said Levin.
“Two additional big problems are FinCEN’s failure to close the
hedge fund loophole that allows millions of unscreened offshore
dollars into the U.S. financial system, and FinCEN’s failure to meet
a 2008 deadline to bolster U.S. incorporation practices. Both are
problems that we can and should fix as part of our efforts to
strengthen U.S. financial regulation.”
Despite a 2001 Patriot Act requirement that all U.S. financial
institutions, including hedge funds and other securities and
commodity broker-dealers, adopt procedures to prevent terrorist
financing and money laundering, FinCEN has not taken the steps
needed to require those companies to set up AML programs. In
2006, as part of an investigation into offshore jurisdictions, the
Subcommittee showed how two U.S. citizens were injecting
millions of offshore dollars into the U.S. financial system through
two hedge funds they operated. A bipartisan Subcommittee staff
report recommended that FinCEN finalize a regulation, which
FinCEN had proposed four years earlier in 2002, to require those
companies to establish AML programs. Instead of finalizing the
regulation, however, FinCEN inexplicably withdrew it in 2008. In
the absence of that regulation, Levin has introduced legislation,
S. 506, to require hedge funds and other unregistered securities
and commodity dealers to set up AML programs.
A second problem not addressed in the GAO report involves U.S.
incorporation practices. Right now, states form about 2 million U.
S. corporations each year without knowing who is behind them, in
violation of an international AML standard requiring countries to
identify the beneficial owners of the corporations they form. In
2006, at a Subcommittee hearing on this issue, FinCEN testified
that it was considering proposing a regulation to require states to
identify the beneficial owners of the corporations formed under
their laws. At the time of the hearing, the United States was facing
a July 2008 deadline set by the leading AML international body,
the Financial Action Task Force on Money Laundering, to
strengthen its incorporation practices. FinCEN, however, never
proposed the regulation, the United States missed the deadline,
and it is now out of compliance with the international AML
standard. In the absence of any regulation issued by FinCEN on
this matter, Levin has introduced legislation, S. 569, to require
states to obtain beneficial ownership information for the
corporations they form.
Other portions of the GAO report show that FinCEN has taken
years to implement the stronger AML protections required by the
2001 Patriot Act. GAO points out, for example, that FinCEN took
years to conclude AML memorandums of understanding (MOUs)
with the key agencies. It signed an MOU with the banking
agencies in 2004, with the SEC and IRS in 2006, and with the
CFTC just two months ago in January 2009. GAO points out that
FinCEN took until 2006 to replace a paper-based system for
tracking case referrals with an electronic case management
system. GAO also highlights an ongoing problem with a FinCEN
policy that denies direct access to its database of suspicious
activity and currency reports for SEC and CFTC regulatory
organizations that employ private sector rather than government
personnel. GAO indicates that, by requiring these organizations
to go through the SEC and CFTC to obtain its data, FinCEN not
only creates delays, but places a strain on the two agencies that
have to forward the data. GAO recommends that FinCEN permit
direct access to its data.
GAO also recommends that all of the government agencies
involved with AML oversight create a nonpublic forum in which
they can discuss examination and enforcement issues.
The GAO report [GAO-09-227] can be found at: http://www.gao.
gov/new.items/d09227.pdf
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
The United States is a source, transit, and destination country for
men, women, and children subjected to forced labor, debt
bondage, document servitude, and sex trafficking. Trafficking
occurs for commercial sexual exploitation in street prostitution,
massage parlors, and brothels, and for labor in domestic service,
agriculture, manufacturing, janitorial services, hotel services,
hospitality industries, construction, health and elder care, and
strip club dancing. Vulnerabilities are increasingly found in visa
programs for legally documented students and temporary workers
who typically fill labor needs in the hospitality, landscaping,
construction, food service, and agricultural industries. There are
allegations of domestic workers, foreign nationals on A-3 and G-5
visas, subjected to forced labor by foreign diplomatic or consular
personnel posted to the United States. Combined federal and
state human trafficking information indicates more sex trafficking
than labor trafficking investigations and prosecutions, but law
enforcement identified a comparatively higher number of labor
trafficking victims as such cases uncovered recently have
involved more victims. U.S. citizen victims, both adults and
children, are predominantly found in sex trafficking; U.S. citizen
child victims are often runaways, troubled, and homeless youth.
Foreign victims are more often found in labor trafficking than sex
trafficking. In 2010, the number of female foreign victims of labor
trafficking served through victim services programs increased
compared with 2009. The top countries of origin for foreign victims
in FY 2010 were Thailand, India, Mexico, Philippines, Haiti,
Honduras, El Salvador, and the Dominican Republic.
The U.S. government fully complies with the minimum standards
for the elimination of trafficking. The government sustained strong
federal law enforcement efforts, strengthening support for federal
task forces and initiating efforts to improve coordination and
proactively identify cases. The government continued to provide
funding to NGOs for services to victims and identified an
increased number of victims. Immigration relief, which may lead to
residency and eventual citizenship, is offered to qualified victims
and immediate family members. The government sustained its
prevention efforts, continuing to examine federal procurement and
specific visa categories for vulnerabilities as well as to undertake
public awareness efforts. The U.S. government annually reports
on its activities to combat human trafficking in a report compiled
by the Department of Justice available at www.justice.
gov/ag/publications.htm including detailed information on funding
and suggestions for improved performance.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| UNITED STATES OF AMERICA |
| KnowYourCountry |
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| Last Updated: 21 May 2012 |