James DeFrantz

For many thousands of workers in the United States, the end of the week renews a weekly ritual; payday.  For those workers who are expatriates, payday renews another ritual, the trip to the local money transmitter also known as Money Service Businesses.  Money Services businesses are defined by FinCEN as follows:   The term “money services business” includes any person doing business, whether on…

For many thousands of workers in the United States, the end of the week renews a weekly ritual; payday.  For those workers who are expatriates, payday renews another ritual, the trip to the local money transmitter also known as Money Service Businesses.  Money Services businesses are defined by FinCEN as follows:   The term “money services business” includes any person doing business, whether on…

Part Three in a Series We have discussed the UBO rule and the changes that will be required when the both parts of the rule are passed- but one thing that we have yet to get into is the how to us ethe information that is collected in a manner that is effective for the overall AML monitoring program.  Put another way- so now that you have the UBO information on your customers- So what?   The…

A Three-part Series- Part Two-The Changes to the Rule  In our first blog in this series, we noted that there are several reasons that the Uniform Beneficial  Ownership rule was expanded.  The attempt to put sanctions on Russian persons and organizations has proven to be difficult based on some weaknesses in our overall regulatory scheme.  We noted  that one of the biggest holes in the system is…

Introduction There are many things that the United States has done to respond to the war in Ukraine.  Among the responses has been to impose sanctions on many parts of the Russian economy, government offices and high-profile individuals.  Once the sanctions had been imposed, the results have brought to attention many of the “holes” that exist in the AML framework.  One of the main tools that…

2020 was an unforgettable year for many reasons; the Covid outbreak, the US national election, civil unrest and just general mayhem.  It was also a significant year in the area of BSA/AML compliance.  In 2020 the US Congress passed the Anti-Money Laundering Act of 2020 (“AMLA”).  Among the significant provisions of this Act were: A statement form FinCEN on the priorities for AML/CFT Expansion…

While the overall public impression of banks and financial institutions took a major hit during the 2008 financial crisis, in large part, the damage was being slowly repaired.   However, it is obvious that the relationship between financial institutions and the public has changed forever.  Even before the coronavirus hit the economy, a  broad wave of consumer distrust buffeted the banking…

  We hear a lot about fintech companies Financial technology, also known as FinTech, is a line of business based on using software to provide financial services. Financial technology companies are generally startups founded with the purpose of disrupting incumbent financial systems and corporations that rely less on software. The overall goal of Fintech companies include: Efficient and speedy…

  For those of you who have experienced a BSA examination or audit, you know one of the first things you are asked for is your BSA/OFAC risk assessment.  It has also likely been your experience to find a risk assessment deemed complete and not in need of some sort of enhancement is something of a “unicorn”.  In most cases, examinations and audits include a comment discussing the need to expand…

For many thousands of workers in the United States, the end of the week renews a weekly ritual, payday.  For those workers who are expatriates, payday renews another ritual, the trip to the local money transmitter also known as Money Service Businesses.  Money Services businesses are defined by FinCEN as follows: The term “money services business” includes any person doing business, whether on a…

For many thousands of workers in the United States, the end of the week renews a weekly ritual; payday.  For those workers who are expatriates, payday renews another ritual, the trip to the local money transmitter also known as Money Service Businesses.  Money Services businesses are defined by FinCEN as follows: The term “money services business” includes any person doing business, whether on a…

Part Three in a Series We have discussed the UBO rule and the changes that will be required when both parts of the rule are passed- but one thing that we have yet to get into is the how-to use the information that is collected in a manner that is effective for the overall AML monitoring program.  Put another way- so now that you have the UBO information on your customers- So what?   The…

A Three-part Series- Part Two-The Changes to the Rule   Introduction In our first blog in this series, we noted that there are several reasons that the Uniform Beneficial  Ownership rule was expanded.  The attempt to put sanctions on Russian persons and organizations has proven to be difficult based on some weaknesses in our overall regulatory scheme.  We noted that one of the biggest holes in…

A Three-part Series- Part One-The UBO Comes of Age Introduction There are many things that the United States has done to respond to the war in Ukraine.  Among the responses has been to impose sanctions on many parts of the Russian economy, government offices, and high-profile individuals.  Once the sanctions had been imposed, the results brought to attention many of the “holes” that exist in…

2020 was an unforgettable year for many reasons; the Covid outbreak, the US national election, civil unrest, and just general mayhem.  It was also a significant year in the area of BSA/AML compliance.  In 2020 the US Congress passed the Anti-Money Laundering Act of 2020 (“AMLA”).  Among the significant provisions of this Act were: A statement from FinCEN on the priorities for AML/CFT Expansion…

We discussed the ways that Fintech companies are on a mission to “disrupt” financial services.   In this case, the disruption doesn’t necessarily have to be a negative connotation.  In fact, in many cases, the disruption that fintech are causing are geared towards improving product delivery.  At the end of the day, FinTechs are working to create efficiencies and deliver products with greater…

One of the constants in the world of compliance is change.   One of the other constants in compliance has been skepticism about consumer laws in general, and the need for compliance specifically.  It is often easy to feel the recalcitrance of the senior management at financial institutions to the very idea of compliance.  Even institutions with good compliance records often tend to do only that…