Regulatory Alerts2018-10-04
Advisory to Financial Institutions on the Risk of Proceeds of Corruption from Nicaragua
The Financial Crimes Enforcement Network (FinCEN) alerts U.S. financial institutions to the heightened risk that proceeds of political corruption from senior figures connected to the Nicaraguan Ortega regime may enter the U.S. financial system. The advisory mandates that institutions file Suspicious Activity Reports (SARs) when identifying potential misuse of public funds or corruption, while emphasizing the need for enhanced due diligence on private banking and correspondent accounts held by or for these individuals. Financial institutions are instructed to specifically reference this advisory in SAR narratives and select designated fields to facilitate law enforcement tracking of these illicit activities.
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