On October 31, 2022, FinCEN issued a press release to inform U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards to combat money laundering, counter the financing of terrorism, and combat weapons of mass destruction proliferation financing (AML/CFT/CPF), has issued public statements updating its lists of jurisdictions with strategic AML/CFT/CPF deficiencies following its plenary meeting this month. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.

On October 12, 2022, FinCEN Acting Director Himamauli Das spoke at the ACAMS AML Conference where he talked about FinCEN’s implementation plan for the Corporate Transparency Act (CTA), particularly the recently issued final rule on beneficial ownership information reporting requirements. Das highlighted the importance of implementing an effective AML/CFT compliance program and how it helps the agency find and stop illicit activities.

On October 11, 2022, FinCEN and OFAC announced in separate press releases that they have taken action against Brittex, Inc., a virtual asset service provider, for willful violations of the BSA and for or apparent violations of sanctions against Cuba, Ukraine-related, Iran, Sudan, and Syria. FinCEN assessed a total of $29,280,829.20 civil money penalty against Brittex, $24,280,829.20 of which will be remitted to OFAC.

On September 30, 2022, FinCEN issued a final rule establishing a beneficial ownership information reporting requirement, pursuant to the bipartisan Corporate Transparency Act (CTA). This rule will require certain entities to file with FinCEN reports that identify two categories of individuals: the beneficial owners of the entity, and individuals who have filed an application with specified governmental authorities to create the entity or register it to do business. The requirements in the final rule are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on entities doing business in the United States.

On September 30, 2022, the OFAC published the Sanctions Compliance Guidance for Instant Payment Systems, which emphasizes the importance of taking a risk-based approach to managing sanctions risks in the context of new payment technologies such as instant payment systems and to highlight considerations relevant to managing those risks. The guidance also encourages developers of instant payment systems to incorporate sanctions compliance considerations and features as they develop these systems.

On September 14, 2022, the OFAC sanctioned ten individuals and two entities for their roles in conducting malicious cyber acts, including ransomware activity. This action is part of OFAC’s series of designations that aim to protect U.S. persons from ransomware activity, facilitators of ransomware activity, and other cybercrime.

On July 15, 2022, the OFAC announced a settlement with American Express National Bank (Amex) to settle its potential civil liability for 214 apparent violations of OFAC’s Kingpin sanctions. Amex agreed to remit $430,500, which reflects OFAC’s determination that the apparent violations were not voluntarily self-disclosed and were non-egregious.

One June 28, 2022, FinCEN and the BIS issued a joint alert to financial institutions advising them to be vigilant against efforts by individuals or entities to evade BIS export controls implemented in connection with the Russian Federation’s further invasion of Ukraine.