Category Archives: Financial Crimes Enforcement Network (FinCEN)

DOJ Announces Policy Ending “Regulation by Prosecution” of Digital Assets

by Joel Cohen, Brent Wible, Ladan Stewart, Marietou Diouf, Robert Denault, and Elisha Mvundura 

Photos of the authors

Top left to right: Joel Cohen, Brent Wible and Ladan Stewart, Bottom left to right: Marietou Diouf, Robert Denault and Elisha Mvundura (Photos courtesy of White & Case LLP).

On April 7, 2025, Deputy Attorney General Todd Blanche issued a memorandum instructing federal prosecutors to cease pursuing “litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets,” noting that regulators and not prosecutors will “do this work outside the punitive criminal justice framework.”[1]  Under the new policy, the Justice Department will prioritize investigations and prosecutions involving individuals who defraud investors in digital assets or who use digital assets in furtherance of other crimes, including offenses related to terrorism, narcotics trafficking, human trafficking, organized crime, hacking, and cartel and gang financing.  The memorandum indicates that the Justice Department plans to close all ongoing investigations that are inconsistent with the new policy.

Continue reading →

End of the Road: Fincen Adopts Interim Final Rule Virtually Eliminating CTA Filing Requirements

by Matthew Bisanz, Brad A. Resnikoff, Kristin E. Rice-Gonzalez, Marcella Barganz, Courtney C. Seitz, Lorenz A. Taets, and Kelly F. Truesdale

photos of the authors

Top left to right: Matthew Bisanz, Brad A. Resnikoff, Kristin E. Rice-Gonzalez, Marcella Barganz, Bottom left to right: Courtney C. Seitz, Lorenz A. Taets and Kelly F. Truesdale (Photos courtesy of Mayer Brown)

March 21, 2025, the US Financial Crimes Enforcement Network (“FinCEN”) issued an interim final rule (the “IFR”) that exempts all domestic entities from beneficial ownership information reporting requirements under the Corporate Transparency Act (the “CTA”) and its implementing regulations (the “Reporting Rule”). These changes have the effect of eliminating any reporting requirement for more than 99.9% of the entities that were previously required to report[1] and, for domestic entities and US person beneficial owners, marking the end of the yearslong journey towards the CTAs reporting requirements, which were enacted into law in early 2021 and implemented by FinCEN’s original rulemaking  in September 2022.

Continue reading →

Cryptocurrency Exchange KuCoin Pleads Guilty to Unlicensed Money Transmission, Agrees to Pay More Than $297.4 Million in Criminal Forfeiture, Fine

by Jonathan J. Rusch

photo of author

Photo courtesy of the author

For more than a decade, as part of its oversight of financial institutions’ compliance with the Bank Secrecy Act (BSA) and regulations thereunder, the Financial Crimes Enforcement Network (FinCEN) has repeatedly stated that any person accepting and transmitting convertible virtual currencies (“cryptocurrencies”) must register with FinCEN as money transmitters and thereafter comply with the anti-money laundering/counter-terrorism financing program, recordkeeping, and reporting requirements.[1]  Even so, a number of cryptocurrency or virtual currency businesses have ignored these longstanding requirements, sometimes resulting in massive criminal and civil penalties.[2]

Continue reading →

SEC Charges Investment Adviser – Signaling Importance of Accurate Disclosure of AML Procedures

by Joel Cohen, Tami Stark, Claudette Druehl, Marietou Diouf, and Jason Ho

Photos of the authors

Left to right: Joel Cohen, Tami Stark, Claudette Druehl, Marietou Diouf and Jason Ho (Photos courtesy of the authors)

The U.S. Securities & Exchange Commission (“SEC”) recently announced settled charges against an investment adviser for misrepresentations regarding its anti-money laundering (“AML”) procedures and compliance failures.[1]  As we outlined in our recent client alert, investment advisers will be required by the Financial Crimes Enforcement Network (“FinCEN”) to implement an AML program by January 1, 2026.  This SEC action does not shed new light on the scope of SEC jurisdiction over AML.  Instead, it serves as a reminder that if an investment adviser says it is voluntarily complying with AML due diligence laws by conducting AML due diligence, it needs to do so.  An investment adviser must also accurately describe its AML program once the anticipated AML requirement for investment advisers commences.

Continue reading →

TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations – Part II: The Regulatory Agency Resolutions

by Jonathan J. Rusch

photo of author

Photo courtesy of the author

On October 10, the U.S. Department of Justice, the Financial Crimes Enforcement Network (FinCEN), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve Board (FRB) announced an extraordinary set of coordinated criminal and civil resolutions involving TD Bank, N.A. and its parent company TD Bank US Holding Company (collectively TD Bank) for systematic and years-long violations of the Bank Secrecy Act (BSA) and money laundering.  The first post on the TD Bank resolutions addressed only the Department of Justice’s criminal resolution with TD Bank.[1] This post will focus on the bank’s resolutions with the regulatory agencies, and identify certain lessons to be learned from this case.

Continue reading →

Federal Court Suspends Enforcement of Corporate Transparency Act Nationwide

by Matthew Bisanz, Brad A. Resnikoff, and Kelly F. Truesdale

Photos of the authors

Matthew Bisanz, Brad A. Resnikoff, and Kelly F. Truesdale (Photos courtesy of Mayer Brown)

On December 3, 2024, the US District Court for the Eastern District of Texas entered a preliminary injunction suspending enforcement of the Corporate Transparency Act (CTA) and its implementing regulations nationwide, concluding that the CTA is likely unconstitutional as it is outside Congress’s power.[1] Although not the first court to reach such a conclusion, the breadth of the relief provided by the court—applying nationwide, rather than to the specific plaintiffs—reflects a significant development, given the rapidly approaching compliance deadlines for many existing companies under the CTA.

The Texas court’s decision has immediate implications for the 32 million reporting companies facing a year-end deadline to report beneficial ownership information to the government, particularly as reporting in early December indicated that only about 30% of the estimated total filings had been received.[2] While the Texas court’s decision effectively suspends the compliance deadline—as the Financial Crimes Enforcement Network (FinCEN) has confirmed—during the pendency of the injunction, the Government has already appealed the decision to the Fifth Circuit and is currently seeking to stay the effect of the preliminary injunction.

Continue reading →

The Top 5 Mid-Year Developments in Anti-Money Laundering Enforcement in 2024

by Stephanie Brooker, M. Kendall Day, Ella Capone, Chris Jones, and Ben Schlichting

Photos of the authors

From left to right: Stephanie Brooker, M. Kendall Day, Ella Capone, Chris Jones, and Ben Schlichting. (Photos courtesy of Gibson Dunn & Crutcher LLP)

In this piece, we analyze some of the most important mid-year trends and developments in AML regulation and enforcement thus far in 2024.  Overall, 2024 has been very active, including key proposed and finalized rules, DOJ policy initiatives, and a notable judicial opinion discussed below.  For a longer version of this piece, please visit Gibson Dunn’s website.

Continue reading →

FinCEN Adopts Rule Extending AML/CFT Requirements to RIAs and ERAs, Further Increasing Regulatory Obligations on Investment Advisers

Photos of authors

Left to Right: David Sewell, Timothy Clark, Ivet Bell, David Nicolardi, and Nathaniel Balk (photos courtesy of authors)

On August 28, 2024, the Financial Crimes Enforcement Network (FinCEN)  adopted a final rule that extends anti-money laundering (AML) and countering the financing of terrorism (CFT) compliance obligations to certain types of investment advisers (the Final Rule), and delegates to the U.S. Securities and Exchange Commission (SEC) the authority to examine investment advisers’ compliance with these obligations.[1] The Final Rule ends a long-running debate over whether to subject investment advisers to AML/CFT obligations after multiple prior proposals to do so had stalled. 

The Final Rule imports standards and requirements that will be familiar to investment advisers affiliated with financial institutions already subject to AML/CFT obligations, but may be new to  smaller and independent investment advisers.  For these entities, the compliance uplift required could be substantial.

Continue reading →

DOJ Launches New Whistleblower Incentive Program

by Kevin Chambers, Terra Reynolds, Douglas K. Yatter, and Lilia B. Vazova

Photos of authors.

From left to right: Kevin Chambers, Terra Reynolds, Douglas K. Yatter, and Lilia B. Vazova. (Photos courtesy of Latham & Watkins LLP)

DOJ’s pilot program aims to fill gaps in existing federal whistleblower programs and incentivize prompt corporate self-disclosure alongside individual whistleblower tips.

Following the March 2024 announcement of its intention to introduce a new corporate whistleblower incentive program, on August 1, 2024, the Department of Justice (DOJ) launched a three-year pilot program for rewarding whistleblowers who alert DOJ to significant corporate misconduct. DOJ’s new program, modeled after whistleblower programs run by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN), may generate a significant number of tips about potential misconduct and adds an important new dimension for companies’ compliance measures and handling of investigations.

Continue reading →

FinCEN Requires Reporting From Dissolved Companies

by Matthew Bisanz, Adam D. Kanter, Brad A. Resnikoff, and Marcella Barganz

Photos of the authors.

From left to right: Matthew Bisanz, Adam D. Kanter, Brad A. Resnikoff, and Marcella Barganz. (Photos courtesy of Mayer Brown LLP)

On July 8, 2024, the Financial Crimes Enforcement Network (“FinCEN”) issued interpretive guidance explaining that the beneficial ownership information (“BOI”) reporting requirement applies to certain legal entities that have been dissolved or otherwise ceased to exist after January 1, 2024. This new guidance dramatically expands the reporting requirement under the Corporate Transparency Act (“CTA”) and raises significant issues regarding compliance and liability for noncompliance.

The new guidance is effective immediately. Persons who own or manage entities that will dissolve in 2024, or have already dissolved this year—or which were not dissolved irrevocably—should review the guidance to determine their reporting obligations.

Continue reading →