The Complete Guide to OFAC
Today’s turbulent world is an indication of the differences that exist between cultures and communities. Sometimes, these conflicts are uncomfortable but tolerable. Other times, the disputes are so egregious or offensive that governments elect to sanction the official bodies responsible for the challenges. When the U.S. government imposes sanctions on a foreign entity, the Office […]
Meeting Know Your Customer (KYC) Requirements in Digital Transactions
Prevention of money laundering has always been a priority for federal regulators, and over the past two decades, the focus has been centered on keeping cash out of the hands of potential terrorists. The Know Your Customer (KYC) framework was originally developed to deter financial crimes, and it is still one of the most effective […]
Managing Risk With Faster Payments
With ACH now offering same-day credits and debits, business cycles are speeding up as a result. However, since a faster pace can also mean more mistakes, it is important to know how to identify the risks and mitigate them when speeding up the sales cycle. European payment processing companies are now advertising real-time settlement options, […]
NACHA Compliance: Everything You Need to Know
The business of moving money and information electronically from one bank to another is a complicated matter, and it’s in the best interest of everyone involved that the process is quick, convenient and secure. That objective is the guiding principle of the non-profit Electronic Payments Association — NACHA — which governs the activities of the […]
Ensure Compliance with ABA Routing Number Verification
Routing numbers have been a fixture for identification purposes since the American Bankers Association (ABA) introduced them in 1910. The ABA Routing Number was originally created to identify financial institutions for check processing, but its use has expanded with the growth of electronic banking practices. The routing number continues to be used to identify participants […]
Fed Warns Casinos on Risk of Noncompliance with AML
The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) promulgates and enforces rules designed to prevent and detect money-laundering activities. When thinking of anti-money laundering (AML) requirements, most people automatically think of banks, credit unions, investment firms and other financial institutions whose primary “product” is money. However, AML requirements are not limited […]
High Revenues Don’t Justify Violating U.S. Sanctions Laws
In 2009, the total global revenues from international criminal activities were estimated at U.S. $870 billion per year. Since then, the rise of cybercrime and use of digital technology to circumvent existing laws and eliminate protective barriers has almost certainly caused that number to rise. In short, criminal business is often a very lucrative business. […]
Insurers: Ignore OFAC SDN Screening at Your Own Risk!
As global commerce, terrorism and financial crimes continue to rise in number and scope, it is critical for financial institutions and insurers to have adequate compliance programs in place to prevent inadvertent violations of the law. In addition to being subject to a myriad of industry rules and regulations, insurance companies are obligated to comply […]
Same Day ACH Essentials Guide for Businesses Released by NACHA
Businesses that are looking to support same day ACH may be interested in NACHA’s recently released essentials guide. If you’re unfamiliar with same day ACH, it’s expected to increase the speed of ACH payments by allowing both sending and crediting of payments on the same day. This becomes effective on September 23, 2016. The guide […]
OFAC Penalties Increase on Foreign Transactions
On August 1, 2016, at the implementation of the “Federal Civil Penalties Inflation Adjustment Act,” the U.S. government will adjust for inflation the fines levied on violators of five federal laws that govern oversight of foreign assets. Civil Fines Punish Legal Violations Most forms of government have some mechanism for punishing people who violate non-criminal […]