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Bank Secrecy Act (BSA) Regulations - Country
Advisories
Gregory J. Cook, EA, CPA
International Money Laundering Efforts
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The United States is not alone in the fight against financial crimes. Many
countries have enacted significant anti-money laundering legislation. A number
of international organizations and regional groups have adopted anti-money
laundering rules and regulations as well.
Basel Committee
The Basel Committee consists of representatives of central banks and supervisory
authorities of Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the
Netherlands, Spain, Sweden, Switzerland, the United Kingdom and the USA. In 1988
the Basel Committee published a “Statement of Principles” on money laundering,
which generally recommended obtaining proper identification from customers and
complying with laws and regulations governing financial transactions.
United Nations (UN)
The UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances (the Vienna Convention) calls on signatories to criminalize money
laundering, to assure that bank secrecy is not a barrier to criminal
investigations, and to promote removal of legislative barriers to investigation,
prosecution, and international cooperation.
Financial Action Task Force (FATF)
FATF was created at the Economic Summit of the major industrialized countries in
1989. It issued a report in which it made 40 recommendations, consistent with
the Vienna Convention, for implementing and coordinating money laundering laws
in member countries. They also formed the basis of money laundering rules and
regulations established by the Caribbean Financial Action Task Force and the
Organization of America States.
Another report FATF has issued on non-cooperative countries and territories
identifies countries with detrimental rules and practices that obstruct
international cooperation in the fight against money laundering.
European Union (EU)
In 1991, the EU issued a directive on money laundering, compatible with the
original 40 FATF recommendations. It requires mandatory reporting of suspicious
transactions and identification of beneficial owners and customers of financial
transactions and accounts.
Country Advisories and Economic and Trade Sanction Lists
FinCEN Advisories
FinCEN has issued country advisories urging enhanced scrutiny of financial
transactions with countries that had deficient anti-money laundering controls.
Advisories can be viewed at www.fincen.gov under Publications/Advisories.
Office of Foreign Assets Control (OFAC) List
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)
issues the Specially Designated Nationals and Blocked Entities List (SDN List).
OFAC regulations required businesses to identify and freeze and the assets of
targeted countries, terrorists, drug cartels and other specially designated
persons. For these lists and specific instructions regarding what businesses may
or may not do under OFAC regulations, refer to the OFAC website at:
www.ustreas.gov/ofac.
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