On April 14, 2022, the U.S. Treasury Department’s anti-money-laundering unit, Financial Crimes Enforcement Network (FinCEN), issued an advisory (Advisory) regarding kleptocracy and foreign public corruption, emphasizing the need for financial institutions to prioritize the detection of proceeds of foreign corruption in their anti-money-laundering efforts, citing Russia as a particular area of concern.
The Advisory helpfully details 10 red flag indicators that financial institutions and other organizations can be aware of in monitoring for potential kleptocratic or corrupt behavior and reminds financial institutions of their reporting obligations under the Bank Secrecy Act. With the Biden administration’s declaration of the fight against corruption as a core national security interest, financial institutions and other organizations dealing in the movement of assets will be well served to ensure that their compliance programs are adequately designed to deter and detect suspicious transactions with a particular eye toward intercepting the proceeds of foreign public corruption.
Sidley’s White Collar practice spans the globe and is consistently recognized as a leader for criminal investigations, agency enforcement actions, False Claims Act matters, and other governmental inquiries and litigation. If you have questions regarding this Update, please contact the Sidley lawyer with whom you work, or one of our White Collar partners or counsel:
- Washington, D.C.
- James M. Cole, email@example.com
- Karen A. Popp, firstname.lastname@example.org
- Thomas C. Green, email@example.com
- Jeffrey T. Green, firstname.lastname@example.org
- Frank R. Volpe, email@example.com
- Kristin Graham Koehler, firstname.lastname@example.org
- Colleen M. Lauerman, email@example.com
- Leslie A. Shubert, firstname.lastname@example.org
- Angela M. Xenakis, email@example.com
- Brian P. Morrissey, firstname.lastname@example.org
- Ellen Crisham Pellegrini, email@example.com
- Craig Francis Dukin, firstname.lastname@example.org
- Jack W. Pirozzolo, email@example.com
- Doreen M. Rachal, firstname.lastname@example.org
- Los Angeles
- Douglas A. Axel, email@example.com
- Ellyce R. Cooper, firstname.lastname@example.org
- Paige Holden Montgomery, email@example.com
- David A. Silva, firstname.lastname@example.org
- New York
- Timothy J. Treanor, email@example.com
- Michael A. Levy, firstname.lastname@example.org
- Joan M. Loughnane, email@example.com
- Michael D. Mann, firstname.lastname@example.org
- David H. Hoffman, email@example.com
- Daniel D. Rubinstein, firstname.lastname@example.org
- Scott R. Lassar, email@example.com
- Geeta Malhotra, firstname.lastname@example.org
- Joseph R. Dosch, email@example.com
- Daniel C. Craig, firstname.lastname@example.org
- San Francisco
- Dave Anderson, email@example.com
- Brian J. Stretch, firstname.lastname@example.org
- Sheila A.G. Armbrust, email@example.com
- Sara George, firstname.lastname@example.org
Senior managing associate Jacqueline Pruitt and associate Nathaniel M. Brose contributed to this Sidley Update.
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