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August 2016

Suspicious Activity Reports Document Bank Transactions on Behalf of Drug Trafficker

Investigators looking at a drug trafficking organization were helped by Suspicious Activity Reports (SARs) that a bank filed on an individual who laundered the illicit proceeds. Prosecutors charged that individual with hiding more than $800,000 belonging to an accused drug dealer involved in a murder-suicide. For several years, the bank meticulously filed SARs on the defendant, a long-time customer who suddenly changed his banking habits.

SARs Help Identify Accounts and Additional Nigerian 419 Scams Associated with $32 Million Coal Mine and “Divine Gold” Ponzi Scheme

Federal law enforcement and regulatory agencies conducted a securities fraud investigation where defrauded investors lost at least $32 million. Investors believed they were investing in coal mines and a huge and highly secretive gold transaction. Three individuals were convicted of running the scheme and sentenced to lengthy prison terms.

One Hundred SARs Help Outline Size and Scope of Fraudulent Mortgage Elimination Scheme

In 2006, a Federal grand jury indicted several businesses and individuals, including mortgage brokers, on numerous charges of mail fraud, bank fraud, conspiracy to commit mail, wire and bank fraud and contempt of court in a nationwide scheme that purported to eliminate the mortgages of thousands of homeowners. The perpetrators, working largely through the Internet, offered to eliminate mortgage debt for fees amounting to thousands of dollars, and then fraudulently obtained equity loans, most of the proceeds of which went to the defendants.

Suspicious Activity Reports Detail Transactions in Mortgage Fraud Scheme

A federal judge has ordered more than 24 years of prison time for a former loan officer who was found guilty on all eight counts of an indictment charging conspiracy, bank fraud, wire fraud, and money laundering. Several financial institutions identified unusual transactions related to the defendant and filed SARs. These SARs proved very helpful during the investigation.

In addition to prison time, the judge ordered three years of supervised release and for the defendant to pay restitution of over $5,000,000 as well as a monetary judgment of more than $1.5 million.

Advisory Information

https://www.gob.mx/shcp/enThe Financial Crimes Enforcement Network (FinCEN) is issuing this Advisory to remind financial institutions of previously-published information concerning regulatory restrictions imposed on Mexican financial institutions for transactions in U.S. currency. In 2010, FinCEN issued an Advisory (2010 Advisory) informing financial institutions of then-recently enacted restrictions.1

Advisory Information

The Financial Crimes Enforcement Network (FinCEN), in consultation with the U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG), is issuing this advisory to highlight reverse mortgage fraud schemes potentially related to the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) program so that financial institutions may better assist law enforcement when filing Suspicious Activity Reports (SARs)1.

Advisory Information

This Advisory is being issued to inform banks and other financial institutions operating in the United States of new developments with regard to Uzbekistan’s anti-money laundering and countering the financing of terrorism (AML/CFT) regime.

Since the issuance of FinCEN’s Advisory FIN-2008-A0041, the Financial Action Task Force (FATF) issued the following statement2 at its February 2010 Plenary:

Advisory Information

FinCEN Advisory

Banks and other financial institutions operating in the United States are advised to give enhanced scrutiny to all financial transactions originating in or routed to or through the Principality of Liechtenstein, or involving entities organized or domiciled, or persons maintaining accounts, in Liechtenstein. The need for such enhanced scrutiny is discussed in the remainder of this Advisory.

Advisory Information

FinCEN Advisory

WITHDRAWAL

This Advisory is being issued to inform banks and other financial institutions operating in the United States that Financial Crimes Enforcement Network (FinCEN) Advisory Issue 17, regarding the State of Israel, is hereby withdrawn.

Advisory Information

FinCEN Advisory

This Advisory is being issued to inform banks and other financial institutions operating in the United States of serious deficiencies in the counter-money laundering systems of the State of Israel. The impact of such deficiencies on the scrutiny that should be given to certain transactions or banking relationships involving Israel, in light of the suspicious transaction reporting obligations of financial institutions operating in the United States, is discussed below.