|By Marketwired .||
|July 21, 2014 10:45 AM EDT||
NEW YORK, NY -- (Marketwired) -- 07/21/14 -- A recent surge in government investigations shows that many businesses -- including not just financial institutions but also casinos and dealers in "hard goods" such as jewelry, automobiles, boats and airplanes -- need to make sure they have money-laundering monitoring and compliance programs fully in place. Even the insurance and real estate industries are being looked at for money laundering, warns New York-based accounting firm Marks Paneth LLP.
Those organizations that fail to develop compliance programs might find themselves facing sanctions for violations of the Bank Secrecy Act (BSA), Anti-Money Laundering (AML) policies and procedures, and regulatory requirements. Not only organizations but also individual executives and directors can face penalties for noncompliance
Cash-intensive businesses as well as financial institutions are at risk if they fail to comply with the government's complex web of anti-money laundering regulations. And scrutiny of overseas accounts is on the increase. The US Treasury Department's recent intergovernmental initiatives to implement information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA) indicates that foreign financial institutions -- including those in jurisdictions that have been money-laundering havens -- may need to disclose more information to US Regulators.
"The regulations say that financial institutions such as banks, credit card companies and investment brokers must monitor and report transactions -- and the provisions apply to other businesses as well," says Sareena M. Sawhney, director in the Litigation and Corporate Financial Advisory Services Group of Marks Paneth.
"Businesses need to find out if the anti-money laundering regulations apply to them," Ms. Sawhney says. "If the answer is 'yes,' then they need to make sure they comply. Compliance means not just following the rules but also having your own written policies in place, and documenting the steps you take to track and monitor transactions."
"Casinos and hard-goods dealers are under scrutiny," Ms. Sawhney adds. "So are certain industries such as insurance and real estate. This is because of specific tactics that money launderers have been using, such as overfunding an insurance policy in order to receive a disbursement check upon withdrawal."
According to Ms. Sawhney:
- Scrutiny -- and enforcement -- are on the increase. Money laundering is an enormous regulatory concern, not only because of conventional criminal activity but also because known terrorist organizations use money-laundering techniques to move funds across borders. The USA PATRIOT Act, put in place after the attacks of September 11, 2001, strengthened several provisions of the existing Bank Secrecy Act. Penalties are increasingly severe. Just recently, The Las Vegas Sands Corp. agreed to pay $47 million to the government for failing to report suspicious customer transactions.
- Businesses must master many requirements and work with many agencies. A complex web of regulations and agencies govern money laundering. In addition to the Bank Secrecy Act and the USA Patriot Act, the US Department of Justice and the Internal Revenue Service also track overseas transactions for compliance with FATCA The US Securities and Exchange Commission enforces the Investment Advisors Act, which includes a broad 'compliance rule' that requires advisors to have written policies and procedures in place to prevent securities law violations -- including money laundering.
- Compliance means not just following the rules, but also documenting that you did. Requirements are complex and sometimes overlap, but in general, they involve reporting large cash transactions and verifying the identities of people who make them. The key to compliance is to establish written policies and procedures that meet the requirements, then document the steps taken to ensure that transactions are correctly monitored and reported. All are subject to audit. Organizations can be sanctioned not only for allowing money laundering to take place, but also for failing to take the right steps, or document that they did.
- Individuals can be sanctioned as well as businesses. In a case against OMNI Investment Advisors, the SEC charged the chief compliance officer, who the agency said failed to establish compliance programs even after the agency notified the firm about deficiencies. Business owners, compliance executives and other senior executives with oversight responsibilities, as well as directors can suffer penalties if there are compliance failures - or even if policies and procedures are found to be insufficient.
- Businesses need to find out if they must comply -- and with which regulations -- and then take steps to make sure they are in compliance. The first step should be a consultation with a compliance expert to establish the scope of compliance requirements. Businesses must then take all necessary steps to ensure compliance -- including the development of written policies and procedures, the creation of reporting mechanisms, other internal controls, and staff training to make sure that all requirements are met and that the organization can withstand regulatory scrutiny. An independent review of policies and procedures can help ensure they meet the requirements.
"Anti-money laundering compliance is difficult -- but with enforcement on the increase, at-risk businesses cannot afford anything less than strict compliance," Ms. Sawhney says. "Any cash-intensive business needs to understand its compliance responsibilities and hold itself to the highest standards."
Ms. Sawhney is available for interviews and can author a bylined article. For more information, contact Katarina Wenk-Bodenmiller of Sommerfield Communications at (212) 255-8386 or [email protected].
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom approximately 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth LLP, whose origins date back to 1907, is the 33rd largest accounting firm in the nation and the 10th largest in the Mid-Atlantic region. In addition, readers of the New York Law Journal rank MP&S as one of the area's top forensic accounting firms for the fourth year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.
Sommerfield Communication, Inc.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Feb. 21, 2017 03:15 PM EST Reads: 706
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
Feb. 21, 2017 03:15 PM EST Reads: 4,434
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 21, 2017 03:00 PM EST Reads: 5,913
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....
Feb. 21, 2017 02:45 PM EST Reads: 2,443
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 21, 2017 02:30 PM EST Reads: 1,293
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 21, 2017 02:15 PM EST Reads: 431
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Feb. 21, 2017 01:45 PM EST Reads: 452
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Feb. 21, 2017 01:45 PM EST Reads: 3,547
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Feb. 21, 2017 01:30 PM EST Reads: 1,068
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Feb. 21, 2017 01:30 PM EST Reads: 739
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
Feb. 21, 2017 01:15 PM EST Reads: 1,229
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Feb. 21, 2017 01:15 PM EST Reads: 1,392
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 21, 2017 01:15 PM EST Reads: 1,199
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Feb. 21, 2017 12:45 PM EST Reads: 769
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Feb. 21, 2017 12:45 PM EST Reads: 700