James Freis

CFTC Orders Leading Financial Institution to Pay $200 Million for Supervision Failures The Commodity Futures Trading Commission (CFTC) has issued an order against J.P. Morgan Securities LLC, a registered futures commission merchant and swap dealer, for failing to properly supervise its business activities as a CFTC registrant. This lack of supervision led to J.P. Morgan failing to capture billions of orders in its surveillance systems. The order revealed that in 2021, during the onboarding process of a new trading exchange, J.P. Morgan discovered that its trade surveillance across multiple venues and trading systems was malfunctioning. This malfunction resulted in significant gaps in their trade surveillance on these platforms. As a result, J.P. Morgan has been fined $200 million. Stay informed and compliant with regulatory changes! For detailed assistance or specific inquiries, reach out to our legal or compliance experts at support@denolus.com. Learn more about how Denolus Consulting can support your compliance journey by visiting us at https://Denolus.com. AIFMD | CASS | CFTC Rewrite | Disclosure Reports | EMIR Refit | FATCA | Form CPO | Form PF | Form 13F | SEC Forms | MiFID | MMF Reporting | UCITS Reporting | Other Transaction & OTC Derivatives Reporting #Compliance #Governance #Management #RegulatoryInteglligence #Leadership #Innovation #HedgeFunds #PrivateEquity #ESGreporting #AlternativeInvestments #Sustainability #Futurism #SocialMedia #ESMA #FCA #SEC #CFTC #MAS #HKMA #SFC #ASIC Source: https://lnkd.in/gHinRmYj

4

**ACTION REQUIRED!** The U.S. Government Financial Crimes Enforcement Network (FinCEN) has a new beneficial ownership information reporting requirement.   If you do business in the U.S. through an entity, then you have until January 1, 2025 (or, if your company was formed after January 1, 2024, then you have just 90 days after formation) to file a beneficial ownership report (BOI) with FinCEN. It is simply a form that tells them who owns or controls the business—and therefore who receives the income from the business. It’s designed to catch money-laundering and other financial crimes.   Who is required to file? All for-profit entities (e.g., an LLC, S-corporation, LLP, etc.) must file a BOI with FinCEN. If you are a 501(c)(3) non-profit, or if you do business as a sole proprietor, you are not required to file a BOI.   You can file the report for free directly through the FINCEN government portal, which you can find (along with information about the filing requirement) here: https://fincen.gov/boi. It only takes a few minutes. You will need the SSN and a copy of a government ID (e.g., a passport or a driver’s license) for all beneficial owners.   Who is a beneficial owner? A beneficial owner is any individual who, directly or indirectly either: (1) exercises substantial control over the company (the CEO, for example); or (2) owns or controls at least 25% of the company.   There are no annual reporting requirements after your initial BOI filing—but you do need to report any changes (e.g., if you change your office or residential address, or if your company changes hands) within 30 days after the change.   Please don’t hesitate to reach out if you have questions, or if there’s anything we can do to assist!

1

💷 New #AntiMoneyLaundering resources for #Insolvency professionals to be aware of: The Office of Financial Sanctions Implementation (OFSI), responsible for financial #Sanctions implementation in the UK, has published updated financial sanctions enforcement and monetary penalties guidance, and has released a new series of FAQs on dealing with sanctions. View the financial sanctions enforcement and monetary penalties guidance: https://lnkd.in/dY2GeMQ5  View the FAQs: https://lnkd.in/dz93urCe Subscribe to OFSI’s updates here: https://lnkd.in/eS4RJg8u #CorporateInsolvency #Turnaround #Restructuring #AML

4

Grateful that I was able to draft the Investment Adviser Association's recent comment letter to the U.S. Department of the Treasury. The IAA fully supports efforts to combat money laundering and terrorist financing, but additions to the robust AML regulatory regime we already have in the United States must be risk-based and designed to fill identified gaps in the existing landscape rather than duplicate the protections that already exist. The IAA has urged the Treasury Department to develop a tailored approach that effectively addresses specific risks while avoiding unnecessary practical and operational burdens, especially burdens on smaller advisers. I believe the IAA's recommendations provide a thoughtful roadmap for achieving this balance. #aml #compliance #investmentadvisers #antimoneylaundering

5

Curious about digital assets? Save the date for a keynote discussion with Acting Comptroller Michael J. Hsu on the tokenization of real-world assets and liabilities, consumer protection, compliance and supervision. https://lnkd.in/eUegcauX

29

2 Comments

📌 OFAC Sanctions Entities Fundraising for West Bank Extremists 📜 On April 19, 2024, the U.S. Treasury's Office of Foreign Assets Control (OFAC) sanctioned two entities, Mount Hebron Fund and Shlom Asiraich, for fundraising on behalf of violent extremists Yinon Levi and David Chai Chasdai. 💵 These extremists were involved in violent activities in the West Bank. The fundraising campaigns generated $140,000 and $31,000, respectively. Additionally, Ben-Zion Gopstein, associated with violent acts, was designated. ✅ OFAC aims to disrupt funding for extremism, blocking assets and transactions of designated entities. Sanctions serve to deter support for violent agendas, promoting peace and stability in the region. Original source 👉: https://lnkd.in/dNh-9UN9 #USsanctions #sanctionsupdate #sanctionscompliance #MountHebronFund #WestBank #fundraising #OFAC

1

As expected, the SEC and FinCEN have proposed a companion Customer Identification Program (CIP) rule to FINCEN’s February proposal, which proposed comprehensive AML requirements for registered investment advisers and exempt reporting advisers. Advisers would be required to establish reasonable procedures to verify the identity of any person seeking to open an account with an adviser and maintain records of the information used to verify the person’s identity. The Investment Adviser Association fully supports efforts to combat money laundering and terrorist financing, but these efforts must be risk-based and designed to fill identified gaps in the existing AML regulatory landscape rather than duplicate the protections that already exist. As I have noted before, this is an important area for the advisory industry, and I'm committed to working with IAA members to advocate on their behalf and ensure they have the resources and guidance they need to comply with AML and sanctions regulations. #AML #sanctionscompliance #financialcrimes #investing #IAA

21

The U.S. Securities and Exchange Commission and the Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN, jointly proposed a new rule that would require SEC-registered investment advisers and exempt reporting advisers to establish, document, and maintain written customer identification programs. The proposal is designed to prevent illicit finance activity involving the customers of investment advisers by strengthening the anti-money laundering and countering the financing of terrorism, or AML/CFT, framework for the investment adviser sector. #SecuritiesAndExchangeCommission #departmentofthetreasury #FinancialCrimesEnforcementNetwork #registeredindependentadviser #ria #Antimoneylaundering #amlcft #customeridentificationprogram #identity #proposal #regulatoryrequirements

1

On April 29, Economic Sanctions & AML Co-Chair Roberto Gonzalez will moderate a panel, “Russia: Unpacking the Ongoing Challenges for Allowable and Abandoned Business,” at the 18th annual Economic Sanctions Enforcement and Compliance Conference hosted by the American Conference Institute. https://lnkd.in/d6X7n_a4 #sanctionscompliance #russiasanctions #economicsanctions

42

2 Comments

📣 Treasury / OFAC Authorizes Specific Transactions Involving MOEX, NCC, and NSD Under General License No. 100 On June 12, 2024, the Office of Foreign Assets Control (OFAC) issued General License No. 100, which authorizes specific transactions involving the Moscow Exchange (MOEX), National Clearing Center (NCC), and National Settlement Depository (NSD). ✅ This license permits U.S. persons to engage in divestment of debt or equity to non-blocked, non-U.S. persons, or the conversion of currencies involving these entities. ⏳ The license is valid until 12:01 a.m. EDT on August 13, 2024. Transactions with entities blocked under Directives 2 and 4 of E.O. 14024 are excluded from this authorization. Original source 👉: https://lnkd.in/gjYb3VPB #USsanctions #sanctionsupdate #sanctionscompliance #OFAC #GeneralLicense100 #RussiaSanctions

3

Unveiling the web of financial crime can be a daunting task.   Traditional methods are often slow and cumbersome. But what if there was a way to trace illicit funds and expose criminal activity with greater precision and efficiency? Fund Trail, the revolutionary forensic audit software from iAcuity Fintech, is here to empower investigators. By leveraging AI, machine learning, and data analytics, Fund Trail helps you: ·  Visualize complex financial transactions ·  Identify hidden patterns and suspicious activity ·  Drill down and deep dive into specific leads ·  Generate customizable reports for clear communication   Join the fight against financial crime! Learn more about how Fund Trail can revolutionize your forensic audits: Read the Full Article here: https://lnkd.in/gSjZUKYY   #FundTrail #ForensicAudit #FinancialCrime #AI #FraudDetection

2

SEC seeks comments on collection of annual financial reports from credit rating agencies The Securities and Exchange Commission (SEC) has opened a window for public comment on the collection of annual financial reports from Nationally Recognized Statistical Rating Organizations (NRSROs), commonly known as credit rating agencies. As part of this process, NRSROs are also mandated to provide a report detailing the number of credit rating actions undertaken during the most recently completed fiscal year. Under the Financial Data Transparency Act (FDTA), certain agencies within the Financial Stability Oversight Council (FSOC), including the SEC, are obliged to gather information in structured, machine-readable formats. This move aims to enhance transparency and accessibility in financial reporting. #xbrl #sec #NRSRO #datareporting #financereporting https://lnkd.in/gdR5eDJs

1

On April 18, the Financial Crimes Enforcement Network (FinCEN) issued 16 new FAQs, and updated 2 more, providing additional guidance and information related to the beneficial ownership information reporting requirement that went into effect on January 1. View them here: https://ow.ly/eJYx50RArkQ #cta #corporatetransparencyact #boi #beneficialownership #faqs #compliance

20

On April 18, the Financial Crimes Enforcement Network (FinCEN) issued 16 new FAQs, and updated 2 more, providing additional guidance and information related to the beneficial ownership information reporting requirement that went into effect on January 1. View them here: https://ow.ly/eJYx50RArkQ #cta #corporatetransparencyact #boi #beneficialownership #faqs #compliance

22

On April 18, the Financial Crimes Enforcement Network (FinCEN) issued 16 new FAQs, and updated 2 more, providing additional guidance and information related to the beneficial ownership information reporting requirement that went into effect on January 1. View them here: https://ow.ly/eJYx50RArkQ #cta #corporatetransparencyact #boi #beneficialownership #faqs #compliance

18

📣 OFAC Removes Entities from Russia-Related SDN List On June 7, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the removal of several entities and individuals from its Specially Designated Nationals (SDN) list under the Russia-related Executive Order 14024. ❌📝 The entities removed include MG International AG and its various aliases, along with associated individuals such as Alexander-Walter Studhalter. These entities, primarily based in Switzerland, Russia, and other European countries, engage in management consultancy and financial services. ✅ The delisting reflects a change in their designation status under the sanctions program aimed at Russia. Original source 👉: https://lnkd.in/gQjc86h3 #USsanctions #sanctionsupdate #sanctionscompliance #OFAC #Russiasanctions #SDNList #Sanctions #ExecutiveOrder14024 #MGInternationalAG

17