- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-02-08T20:09:00
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking (NPRM) that would require the handlers of all-cash residential real estate transactions in all U.S. cities and counties to disclose the beneficial owners.
All-cash residential real estate transactions have long been eyed as easy ways for criminals and oligarchs to launder money and access the U.S. financial system. Residential real estate transactions that require borrowing are less attractive to bad actors because the financial institutions handling them must adhere to anti-money laundering (AML) standards set by the Bank Secrecy Act. Those standards include having an AML program in place and reporting suspicious transactions to FinCEN.
FinCEN fought against this loophole with geographic targeting orders (GTOs), which were first launched in New York City and Miami in 2016 and require professionals involved in real estate closings and settlements to file a report with the agency listing the beneficial owners of all-cash residential real estate transactions.
The agency proposed applying the requirements of GTOs to the entire country in its NPRM, released Wednesday.
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A federal court judge in Alabama ruled the Corporate Transparency Act was beyond Congress’s power, potentially throwing the effectiveness of the Financial Crimes Enforcement Network beneficial ownership information registry into doubt.
The Financial Crimes Enforcement Network will focus its attention regarding compliance with its new beneficial ownership reporting requirements on education and outreach during the first year of implementation, although “willful violations” will still merit punishment.
The Financial Crimes Enforcement Network will propose categorizing investment advisers as financial institutions that must comply with the Bank Secrecy Act, including having an anti-money laundering program.
Mobile health applications and similar technology must notify customers following a data breach or risk violating the Federal Trade Commission’s Health Breach Notification Rule, under a broad update approved by the agency.
A commissioner at the Commodity Futures Trading Commission is calling for the agency to launch initiatives addressing the use—and misuse—of artificial intelligence tools in commodities markets.
Tens of millions of noncompete clauses included in employee contracts nationwide will be null and void by about Labor Day under a final rule issued by the Federal Trade Commission.
