Share |  Print

Compliance | Products & Solutions

Support page for ABA Telephone Briefing on New OFAC Enforcement Guidelines: Implications for Your Integrated BSA/AML Program

This page supports the ABA Telephone Briefing, New OFAC Enforcement Guidelines: Implications for Your Integrated BSA/AML Program, presented on January 18, 2006, by providing links to information about the recent regulatory developments discussed during the presentations. 

Keep up-to-date with regulatory compliance developments by visiting the ABA Compliance page. Add it to your favorites now!

OFAC Announces New Enforcement Procedures for Banks (1/12/06)
Acting through an interim final rule, OFAC has replaced January 2003 proposed Enforcement Guidelines with new enforcement procedures applicable to banks.  These procedures recognize "that each banking institution's situation is different and that its compliance program should be tailored to its unique circumstances" and builds upon the compliance approach described in the Interagency BSA/AML Manual's section on OFAC.  The new procedures outline OFAC's oversight process and frequency, identify factors affecting its decisions to take administrative action and contain risk matrices and description of sound OFAC compliance program components.  The procedures are effecive in 30 days, but the agency invites comment for 60 days.  (Comments due March 13, 2006).  The new guidance is the subject of an ABA Telephone Briefing scheduled for January 18, 2006.

In enforcement orders imposing a total of $80 million in civil money penalties, federal and state agencies have required ABN AMRO to take extensive remedial actions to address BSA/AML compliance, as well as OFAC compliance, deficiencies and sanction law violations occurring before August 2004. The Federal Reserve, the New York State Banking Department, and the Illinois Department of Financial and Professional Regulation announced the issuance, together with De Nederlandsche Bank N.V. (the regulator of Dutch banks), of a consent Cease and Desist Order against ABN AMRO and its branches in New York and Chicago requiring ABN AMRO to make improvements to its global compliance and risk management systems to ensure adequate oversight, effective risk management, and full compliance with applicable U.S. laws and regulations. The Order incorporates and largely supersedes the July 23, 2004 Written Agreement reached by state and federal regulators with ABN AMRO.
 
In addition, the Federal Reserve Board, FinCEN, OFAC and New York and Illinois authorities, announced the assessment of penalties against ABN AMRO. The agencies have assessed penalties based on findings of unsafe and unsound practices; on findings of systemic defects in ABN AMRO's internal controls to ensure compliance with U.S. anti-money laundering laws and regulations, which resulted in failures to identify, analyze, and report suspicious activity; and on findings that ABN AMRO participated in transactions that violated U.S. sanctions laws. ABN AMRO is also required to take ongoing measures to ensure compliance with U.S. sanctions laws.  Read the Fed/OFAC/State CMP Order.  Read the FinCEN CMP Order.
 
 
Hank Grant's Presentation:

Questions? Contact the Center for Regulatory Compliance.