Regulatory Alerts2008-03-20 | FinCEN Advisory – FIN-2008-A003Added
Guidance to Financial Institutions on the Money Laundering Threat Involving the Turkish Cypriot Administered Area of Cyprus
Banks and other financial institutions operating in the United States must apply enhanced scrutiny to transactions involving financial institutions in the Turkish Cypriot administered area of Cyprus due to serious anti-money laundering deficiencies. These deficiencies include a two-tiered banking system where offshore banks are largely exempt from supervision and a lack of an operational financial intelligence unit. Covered institutions are required to establish risk-based due diligence programs for correspondent accounts under 31 C.F.R. § 103.176 and file Suspicious Activity Reports if transactions involve funds derived from illegal activity or indicate money laundering.
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