Jo Ann Barefoot

Save the Date! On August 1 at 2pm EDT, our office is hosting a Tribal webinar with the U.S. Department of the Treasury, Financial Crimes and Enforcement Network (FinCen) on the new beneficial ownership information reporting requirements under the Corporate Transparency Act (CTA). Enacted in 2021, CTA requires certain businesses chartered under Tribal and state laws to report beneficial ownership information to FinCEN. FinCEN recently released FAQs addressing Tribally-owned entities and individual Tribal-member owned businesses chartered under Tribal law. FAQ A.5 defines a Tribe under the Corporate Transparency Act. FAQ C.11 provides guidance on when entities formed under Tribal law must report. FAQ D.17 addresses Tribally owned entities To learn more about this FAQ, see https://lnkd.in/eP9tD4XK To register for this webinar, please use this link https://lnkd.in/eKGgjYsp  

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The Consumer Financial Protection Bureau's April report on virtual currency as a financial risk that can harm consumers has increased the agency's monitoring of virtual worlds and video games, where users may be vulnerable to exploitation and fraud. Read the full report at https://buff.ly/3R2533u #videogames #gamer #gaming #twitch #metaverse #virtualmarket #virtual #finance

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The Fed, OCC, and FDIC recently released a supplementary resource - Third-Party Risk Management, A Guide for Community Banks - in hopes of aiding community #banks in achieving TPRM compliance. Learn the main components of this guide: https://hubs.ly/Q02GY34n0 #communitybanks #compliance #thirdpartyrisk

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🔴 U.S. Agencies Issue Joint Alert on Timeshare Fraud Linked to Mexico-Based Groups (https://lnkd.in/gM844xSF) Topics and Core Ideas: - Joint notice from FinCEN, OFAC, and FBI on timeshare fraud schemes by Mexican transnational criminal organizations (TCOs), especially the Jalisco New Generation Cartel (CJNG). - Overview of timeshare fraud methodologies, financial typologies, and money laundering associated with these schemes. - Red flag indicators to help financial institutions detect and report suspicious activity. - Guidance on information sharing and reporting requirements for financial institutions. Key Points and Highlights: 1. Mexican TCOs, particularly CJNG, are targeting U.S. owners of timeshares in Mexico through complex telemarketing scams, often victimizing older adults. 2. Scammers impersonate legitimate businesses and use high-pressure tactics to convince victims to pay upfront "taxes" and "fees" for fake timeshare sales, rentals, or investments. 3. Victims often send wire transfers from retirement accounts or trusts to Mexican shell companies controlled by the TCOs. 4. The fraudulently obtained funds are used to finance drug trafficking operations and purchase luxury real estate or construct timeshare resorts for future schemes. 5. Financial institutions should be vigilant for red flags such as:   - Uncharacteristic wire transfers to Mexico for timeshare "taxes" or "fees"   - Transactions involving newly formed Mexican companies in the timeshare industry   - Multiple structured wire transfers with similar memo lines. 6. FinCEN requests financial institutions use the key term "FIN-2024-NTC2" in SAR filings related to this notice, and select "Fraud - Other" as the suspicious activity type with "TimeshareMX" in the text box. 7. Financial institutions are encouraged to share information under section 314(b) of the USA PATRIOT Act to help identify and prevent timeshare fraud. 8. Victims should be referred to file complaints with the FBI's Internet Crime Complaint Center (IC3) or the National Elder Fraud Hotline. 9. OFAC has sanctioned individuals and companies linked to CJNG's timeshare fraud activities under Executive Order 14059. 10. Financial institutions are reminded of their BSA obligations, including customer due diligence, AML/CFT program requirements, and reporting suspicious activities.

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We are back with another live webinar you do not want to miss! Unlocking the Consumer Financial Protection Bureau’s Rules and Polices: A Guide to Public Registries w/ Ashwin Vasan, Senior Advisor at FS Vector and former Senior Advisor to the Director at the #CFPB, Jay Harris and Justin Hosie from our great friends and partners at Hudson Cook, LLP Thursday, August 15th at 3:00pm ET! REGISTER TODAY AT: https://lnkd.in/e_7-gbw2 This year, the #CFPB introduced a new registry aimed at identifying and publishing the records of companies and the individuals responsible for repeat offenses resulting in enforcement actions. Additionally, the CFPB has proposed a rule to establish a public registry for terms and conditions in form contracts that seek to waive or limit consumer rights and protections. These registries can create challenges for companies' reporting and compliance processes, and therefore need to be adequately understood. Join us for an in-depth exploration of these new developments, as they break down what these registries mean for businesses and consumers alike, and how they could impact your practices and compliance strategies. REGISTER TODAY AT: https://lnkd.in/e_7-gbw2

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New BAI Guide on Check Fraud Prevention BAI has released a must-read guide titled "Identifying and Preventing Check Fraud," packed with essential strategies for combating both traditional and electronic check fraud. Key highlights include: 1) Understanding check structure and negotiation 2) Identifying common check fraud tactics and fake check scams 3) Descriptions of check fraud types: paperhanging, check washing, check kiting, forgery, counterfeit checks, and electronic check fraud Advanced prevention methods recommended by BAI: 1) Transactional/Behavioral Analytics 2) Image Forensic AI 3) Payee Positive Pay 4) Consortium Data 5)Dark Web Monitoring Employee training is emphasized as critical, particularly for tellers, who serve as the front-line defense against fraudulent checks. The guide is an invaluable resource for financial institutions aiming to enhance fraud prevention measures. Review the guide and learn more about integrating these strategies and technologies in today's blog post!

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This morning the Treasury Department released corrections to its final rule, Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Assets Transactions, which were first made public on June 28 and published in the Federal Register on July 9. Today’s release consists of 17 discreet corrections to that rule. In my review,* only one of these corrections is substantive enough to merit going back and looking to see if that correction changes your view of the final rule, and that correction is this: The fourteenth correction in today’s release changes page 56517 of the Federal Register (the top line of page 133 that you might have saved or printed out on June 28) to take out the second “not” in language that reads, “…a CFC digital asset broker not conducting activities as an MSB was [not] permitted to treat a customer as an exempt foreign person….” The other 16 changes are mostly typographical. A few of them are designed to indicate that Treasury received more than one comment on a particular issue involving the cost of reporting NFTs. This is obviously intended to show that Treasury and the IRS reviewed all relevant comments submitted to them, thus hoping to avoid an Administrative Procedure Act challenge to the final regulations in that regard. If you have any questions, we’re here to help. Taxbit *This is not legal advice. Your mileage may vary. Check with your first-year associate before dropping this into an email to your client. Also, I’m happy to walk that first-year associate through this if you want.

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This morning, the Consumer Financial Protection Bureau issued a proposed interpretive rule concerning #EarnedWageAccess products. We are deeply concerned that this proposed action will hurt millions of workers who rely on EWA to tap into their already-earned wages so they don’t have to depend on outdated monthly or biweekly pay periods to manage their expenses Earned Wage Access should not be considered a loan as it is a no-cost, non-recourse product that gives workers access to money they have already earned, not future pay. We look forward to providing further comments in response to the proposed interpretive rule and urge the Bureau to focus on ensuring that consumers have financial choice and can access flexible solutions like EWA. READ our full response below ⬇ https://lnkd.in/erKfVeFs

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The Government Accountability Office (GAO) has estimated that U.S. agencies may have lost up to $521 billion to fraud from fiscal years 2018 to 2022, a figure contested by the Office of Management and Budget (OMB). In response, the Treasury Department, under the guidance of Fiscal Assistant Secretary David Lebryk, is advancing proactive fraud prevention strategies. These include new tools and databases for verifying payment integrity and eligibility, such as the Account Verification Services and a machine learning tool that has already prevented over $500 million in fraudulent paper check payments. Furthermore, the Treasury is seeking insights from the private sector to enhance these efforts, supported by legislative actions aimed at maintaining and expanding anti-fraud measures initially developed during the pandemic. Key Highlights: - GAO's Fraud Estimate Dispute: There's significant disagreement between GAO and OMB over the estimated $521 billion lost to fraud. - Treasury's Proactive Fraud Prevention Tools: Treasury is implementing databases and services like the Center of Payment Integrity to enhance fraud prevention measures. - Success of Machine Learning Tools: A new tool has successfully flagged anomalies in about 40 million checks, stopping $500 million in fraud. - Engagement with Private Sector: Treasury is exploring private sector advancements in fraud prevention technology, signaling an openness to adopting external innovations. - Legislative Support for Anti-Fraud Measures: New bipartisan legislation aims to preserve and repurpose analytics tools for broader federal fraud detection, highlighting governmental commitment to tackling fraud. #scams #fraud #treasury #antifraud #fraudprevention #frauddetection #gao #edd #kyc #smallbiz #govcon #wosb #accounting #audit #cfe #cpa #aml #cams #cfcs #fincen #fincrime https://lnkd.in/eYPTNCuF

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How Crypto Firms Can Use FEMA’s National Resilience Guidance to Supercharge Business Continuity https://lnkd.in/g32yUXUb As FEMA has declared 2024 the Year of Resilience, their new National Resilience Guidance is a treasure trove of principles that can apply to any industry, including the wild west of cryptocurrency. For crypto firms, adopting these principles can strengthen business continuity plans and keep operations from dying during a disaster in a sector that’s volatile and always changing. Key Takeaways for Crypto Firms: Risk Assessment and Management: Understanding and preparing for financial and operational risks unique to the crypto space (market fluctuations, cyber threats, regulatory changes) is key. FEMA’s emphasis on risk assessments can help crypto firms develop better mechanisms to anticipate and mitigate those risks. Community and Stakeholder Engagement: Engage with stakeholders (not just investors and employees but regulatory bodies, tech partners and the broader community) to build trust and cooperation. This is critical for navigating crises and staying compliant with changing regulations. Resilience Planning: A resilience plan that includes not just recovery strategies but proactive measures to prevent disruptions are essential. That means advanced cybersecurity, redundant systems, and all employees trained in disaster response and recovery procedures. Continuous Improvement: Resilience is not a one-time goal but a continuous process of learning and adaptation. Regular updates to business continuity plans, informed by new risks and past incidents, will keep crypto firms agile and prepared for what’s next. Public-Private Partnerships: Partner with other businesses and public entities to get extra resources and support. Those partnerships can provide shared recovery services, better tech solutions and collective lobbying for favorable regulations. What to Do: Read FEMA’s National Resilience Guidance and see which principles apply. https://lnkd.in/g32yUXUb Apply those principles to the crypto space. Execute through planning and stakeholder engagement. Join the conversation: What do my fellow crypto peers think? How can we adapt FEMA’s resilience principles to our world? What works for you? How can we as an industry survive and succeed? If you're interested in delving into our Business Continuity Advisory, please get in touch with Landis & Co for tailored strategies at emily@emilylandiswalker.com and follow Landis & Co now. Lets meet: https://lnkd.in/dyM7xDzg Andrew Sheves Chris Ekai Jeff Chatterton Mark Armour, cABCF Mark Bittinger James Burnie FRSA Lori Souza, MBA BSIT Andrea Perlak Oonagh van den Berg (Lady) 🐦‍🔥 #CryptoSecurity #BusinessContinuity #FEMAResilience #RiskManagement #BlockchainCommunity

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On August 9, the U.S. National Credit Union Administration (NCUA) Board unanimously approved a proposed rule aimed at standardizing data submissions across federal financial regulatory agencies. This proposal, driven by the Financial Data Transparency Act of 2022, marks a significant step towards enhancing the interoperability of financial regulatory data. Key Points: - Interagency Collaboration: The proposed rule will establish uniform data standards, including identifiers for legal entities and other common identifiers, across multiple financial regulatory agencies. - Future Implementation: Within two years of finalizing these standards, the NCUA will issue a separate rule to adopt these data standards for information collected by the agency. - Public Feedback: The NCUA is inviting comments on the proposed rule, which will be accepted for 60 days following its publication in the Federal Register. This initiative is expected to streamline data collection and improve regulatory efficiency across the financial sector. For more updates on financial regulation and data transparency, follow Global Regulatory Insights! #NCUA #FinancialRegulation #DataTransparency #FinancialData #RegulatoryCompliance #GRI

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New guidance from a trio of regulators designed to aid community banks in their management of third-party relationships is a welcome sign in the industry. Partner and U.S. Head of Community Banking, John Soffronoff tells Banking Dive the guidelines provide a good roadmap for community banks to evaluate their third-party relationships throughout their entire lifecycle. Click on the image below to learn more about what John has to say ⬇️ #Communitybanking #Risk #Financialservices

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This month, The OCC, FDIC, and Federal Reserve Board released a guide to help community banks manage risks presented by third-party relationships. The guide mentions adverse media monitoring as a relevant source during due diligence and ongoing monitoring. Owlin's solution perfectly aligns with the guide's emphasis on (continuous) adverse media monitoring. By monitoring over 3 million sources in 17+ languages, Owlin enables businesses to make well-informed decisions and proactively manage third-party risk. With Owlin, users can customize personal filters to see the most relevant information tailored to their specific needs. Moreover, Owlin seamlessly integrates into existing workflow systems, offering flexibility and scalability, offering a comprehensive third-party management solution for community banks. 🔗 https://hubs.ly/Q02yzQT20 #CommunityBanks #RiskManagement #AdverseMediaMonitoring #Compliance #Owlin #FDIC #FederalReserve #ThirdPartyRisk #RealTimeInsights

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The triumvirate of US federal banking regulators is doing a regulatory stocktake re: consumer protection; directors, officers and employees; and AMLCTF. https://lnkd.in/gStxZAYJ

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CFPB launches process to recognize open banking standards The Consumer Financial Protection Bureau (CFPB) has issued a rule outlining the qualifications for industry standard setting bodies to comply with the Personal Financial Data Rights Rule, including a step-by-step guide for application and evaluation. The CFPB is promoting open banking in the US by implementing new personal financial data rights. These rights, passed in 2010, will benefit smaller financial institutions and startups. The CFPB had proposed a rule in October 2023 to implement these rights, which will be finalized in the coming months. Read more at 👇 https://okt.to/mWCK9g #Banking #OpenBanking #technology #digitalization #Digital #Fintech

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🚨 🚨 Farms and Ranches Required to File Ownership Information with U.S. Treasury 🚨 🚨 Many farms and ranches will be required to file “beneficial ownership” information with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury. In 2021, Congress passed a law called the Corporate Transparency Act that requires businesses to report the identity of their owners with the goal of reducing financial crime. Unfortunately, many small businesses like farms and ranches are required to comply with this requirement. Who must file: Any producer whose farm or ranch employs 20 employees or less, is a corporation, limited liability company (LLC), partnership, or was formed as another type of entity by filing a document with the secretary of state or similar state office is required to file a Beneficial Ownership Report with FinCEN. When to file: Companies that were registered before January 1, 2024, have until January 1, 2025, to file their report. Any companies created between January 1, 2024, and January 1, 2025, have 90 days from their creation or registration with the state to submit this report to FinCEN. Additionally, any updates or corrections to beneficial ownership information must be submitted within 30 days. Where to file: To comply with the Corporate Transparency Act, you must fill out a form online at https://www.fincen.gov/boi. The form will require your name, date of birth, residential or business address, and a unique identifying number like your driver’s license or passport number.    Producers are encouraged to consult with their attorneys to determine if the CTA applies. Penalties for non-compliance can include a $500 per late day fine, up to $10,000 in fines, or even prison sentences for refusing to comply with the law. Resources: For more information, visit https://www.fincen.gov/boi or review FinCEN’s Small Entity Compliance Guide at https://lnkd.in/ec8H4f62. This information is not professional advice, and you should always consult with a tax professional and/or attorney for advice as to whether the Corporate Transparency Act applies to you.  #beneficialownership #farmandranch #corporatetransparencyact

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Everyone is harmed (read: it costs you $) by banking fraud. Come learn how identity helps solve the problem. https://lnkd.in/gN6Mkj7G #fraud #fraudprevention #security #financial #identity

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Yesterday, the OpenID Foundation submitted an open letter to the Consumer Financial Protection Bureau to encourage them to include reference to a Qualified Industry Standard for a Communication Protocol within their Notice of Proposed Rulemaking on Personal Financial Data Rights. Without such a standard, such as the #FAPI protocol that has been selected by 10+ jurisdictions around the world, the CFPB risks: 🔓 Heightened #security risks to the global supply chain as a result of lowest-cost, untested implementations 🚆 A lack of #interoperability that makes implementation costlier and more complex for third-parties ⏳ A slower time-to-market for #openbanking 😣 Frustrating #userexperience Financial Data Exchange National Institute of Standards and Technology (NIST) Cybersecurity and Infrastructure Security Agency Don Cardinal Nat Sakimura 💯Dima Postnikov 🆔 💯 Joseph Heenan Mark Haine 💯 Dave Tonge Marie Jordan Nancy Cam-Winget George Fletcher Ian Glazer Kosuke Koiwai Adam M. Sommer Pamela Dingle Osamu Oshima Aaron Parecki Wesley Dunnington Ben Boeser Naveen CM https://lnkd.in/emXPnvxU

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Why payments need to be borne as 'public goods'? This Federal Reserve Board Governor Waller's speech put it simpler (in 2 complementary ways): 1. Identifying the need and timing for technical standards, incorporating a breadth of industry perspectives, and aligning on implementation approaches requires 'coordination', and central banks play a key role as neutral conveners to harmonise efforts from all relevant stakeholders. 2. Leading by example, central banks' operated payment platforms provide expertise in the adoption of standards and best practices. RTGS systems remain as the backbone of the financial system, they serve as rails for safe and efficient settlement in central bank money #RTGS #payments #ISO20022 #standards #innovation

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