Money Laundering: A Changing Paradigm

Item: The Financial Industry Regulatory Authority (FINRA) wrote to securities industry executives last March to “highlight new and existing areas of particular significance to FINRA's examination program for 2009,” warning them to reassess their firms' compliance and supervisory programs with special attention to AML and the FCPA. The letter concludes: “We hope that by sharing these areas of potential examination focus and other developments, your Firm will be well armed to assess your compliance operations, internal controls and supervisory systems.” http://www.finra.org/web/groups/industry/@ip/@reg/@guide/documents/industry/p118113.pdf

Item: New York State's Insurance Department last June issued Circular Letter 11 (2009) to all Licenses, setting forth the Superintendent's expectations regarding compliance by licensees with three areas of federal law: the Bank Secrecy Act, the FCPA, and regulations of the Office of Foreign Assets Control. “Although supervision and enforcement of these statutes resides with national regulators,” the Superintendent observes warns that “compliance with these laws is consonant with prudent risk management” and that well designed programs to ensure compliance with federal law “should prove effective in detecting violations of New York law ' pertaining to money laundering and insurance fraud.” The letter warns that the Insurance Department may specifically ask the members of a licensee's senior most governing body or senior management” about policies aimed at compliance with federal law. http://www.ins.state.ny.us/circltr/2009/cl2009_11.htm.