Regulatory Alerts2009-07-10 | FinCEN Advisory – FIN-2009-A004Added
Guidance to Financial Institutions Based on the Financial Action Task Force Statement on Anti-Money Laundering and Counter-Terrorist Financing Risks Posed by Iran, Uzbekistan, Turkmenistan, Pakistan, and São Tomé and Príncipe
Banks and other financial institutions operating in the United States must consider the risks arising from deficiencies in the anti-money laundering and counter-terrorist financing regimes of Iran, Uzbekistan, Turkmenistan, Pakistan, and São Tomé and Príncipe. Under 31 C.F.R. § 103.176, covered institutions are required to apply due diligence to correspondent accounts maintained for foreign financial institutions, including establishing risk-based policies and controls to detect and report suspicious activity. Institutions must file Suspicious Activity Reports if they know, suspect, or have reason to suspect transactions involve funds derived from illegal activity or other violations of federal law. This advisory reaffirms the continued effectiveness of previous FinCEN guidance regarding Iran and Uzbekistan, while reminding institutions of existing U.S. sanctions administered by the Office of Foreign Assets Control and United Nations Security Council Resolution 1803.