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Deutsche Bank Sanctioned in Connection with Jeffrey Epstein Banking Relationship

July 9, 2020 | Compliance Financial Crime Consulting

The New York Department of Financial Services (“NYDFS”) recently sanctioned Deutsche Bank (“DB”) $150 million for BSA/AML deficiencies.  According to the regulator’s factual findings, the compliance failures arose in connection with the bank’s private wealth relationship with Jeffrey Epstein, and correspondent banking relationships with Danske Bank Estonia (“Danske Estonia”) and FBME Bank (“FBME”), both located in Eastern Europe.

This latest enforcement action against DB follows several others issued against the bank by NYDFS since 2015, including for improper conduct arising … Read More

COVID-19 Pandemic Oversight is Heating Up

June 11, 2020 | Compliance

Oversight of congressional funding and the economic impact of the COVID-19 pandemic picked up steam this week. Anyone who received funding from the CARES Act or other disaster relief legislation needs to be sure the money can be properly accounted for.

The Senate recently confirmed Brian Miller as Special Inspector General for Pandemic Recovery (SIGPR).  As SIGPR, he will oversee the taxpayer-funded pandemic recovery fund and lead audits and investigations to prevent and detect fraud and abuse. Miller will also … Read More

COVID-19: CARES Act and False Claims Act Compliance

June 10, 2020 | Compliance

The COVID-19 pandemic has left us all in an embattled state, and the businesses that fuel our economy have probably been hit hardest of all. In an effort to help mitigate the damage, the government is funneling $2.2 trillion to hard-hit companies via the CARES Act (Coronavirus Aid, Relief, and Economic Security Act). While the potential is always high for fraud and abuse in relation to large, cumbersome governmental actions, this is never truer than when they are precipitated by … Read More

On the Front Line, Banks Must Protect U.S. Taxpayer Money from Fraud

May 7, 2020 | Compliance

Congress passed stimulus bills to provide emergency relief to individuals and businesses adversely impacted by the COVID-19 pandemic crisis. Banks have already exhausted the first $350 billion in loans to small businesses through the Paycheck Protection Program (“PPP”) and are working on lending an additional $320 billion. With this much money going out the proverbial door, surely a large number of frauds will follow, especially if the gate keepers — banks — don’t keep watch.

Under the PPP, eligible banks … Read More

As Regulators Continue to Provide Guidance During These Unprecedented Times, Some is Easier to Interpret Than Others – A Focus on OFAC

May 6, 2020 | Compliance

Various regulators have recognized in guidance, press releases, and the like, that financial institutions and other corporations may need to adjust some or all of their compliance operations to handle the challenges posed by the COVID-19 pandemic.  Some guidance is easier to interpret and adhere to than others.  Examination timing and logistics continue to be adjusted on a case by case basis and firms have been working directly with their primary regulators to make appropriate adjustments as needed.  Some guidance … Read More

Post-COVID-19 Investigations and Healthcare Fraud

May 4, 2020 | Compliance Investigations

As we continue to work through the new world of COVID-19, it’s important not to lose sight of what is almost certainly on the horizon – post-COVID investigations. The federal government has poured trillions into not only containment and treatment, but also financial stimulus. In order to facilitate greater flexibility for healthcare providers attending to the onslaught of pandemic-related needs, the feds are waiving certain requirements. Nevertheless, healthcare facilities should be implementing careful compliance practices to help avoid potential claims … Read More

The CARES Act Auditors are Coming! Will you be Ready?

April 30, 2020 | Compliance

Under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and three other coronavirus related acts, Congress provided emergency relief to individuals and businesses adversely affected by COVID-19. With this legislation, Congress funded over $2 trillion in relief in lending programs, grants to businesses, and support for American workers.

 

Many of these loan and grant programs have specific limitations and restrictions on how loan proceeds and grant funding may be used. Some require participants to submit certifications and
Read More

USCIS Issues Updated M-274 (I-9) Handbook for Employers

April 28, 2020 | Compliance Immigration + Border Services

Today, U.S. Citizenship and Immigration Services issued an updated version of the M-274 I-9 Handbook for Employers.  The updates follow the changes that resulted from the release of the revised I-9 Form on January 31, 2020. It also includes additional guidance for commonly asked questions and issues raised by employers.

The M-274 is the “go-to” manual for questions regarding I-9 completion and its continued updates are an extremely helpful way for the regulatory agencies to ensure that employers have … Read More

NYDFS to Industry: NY Means Business When it Comes to Having a License to do Business

April 24, 2020 | Compliance Financial Crime Consulting

The New York State Department of Financial Services (NYDFS) has taken several high-profile enforcement steps in recent months against entities alleged to have taken advantage of doing business in New York State without the necessary regulatory license.  Enforcement activity against the National Rifle Association (NRA), Athene Holding Ltd., as well as Trinity Healthshare and Aliera, serve as reminders that NYDFS takes very seriously the obligation to abide by New York statutory licensing requirements.

This is for good reason — businesses … Read More

NYDFS Issues Enforcement Action Against the Industrial Bank of Korea

April 21, 2020 | Compliance Financial Crime Consulting

The New York State Department of Financial Services yesterday issued an enforcement action against the Industrial Bank of Korea (“IBK”) for violations of New York’s anti-money laundering and recordkeeping obligations. It is the first of these type of BSA/AML enforcement actions issued by the Department in some time; this is not surprising, given that NYDFS, like other regulators, has been consumed with responding to the COVID-19 pandemic.

Significant elements of the Consent Order include:

  • a $35 million penalty to be
Read More