Under Internal Revenue Code section 7609(f), the IRS may issue a “John Doe” administrative summons to discover the identities of unknown taxpayers. A “John Doe” summons can be a powerful enforcement tool because it allows the government to force third parties, such as banks and credit card companies, to provide numerous records regarding suspected tax code violations by persons whose precise identities are unknown to the IRS but who, as a group, are suspected of tax evasion. The IRS may serve a “John Doe” summons on a third party only with federal court approval.
Continue Reading 2016 Year End Review: Virtual Currency: DOJ and IRS Broadly Seek Virtual Currency Account User Information
Marjorie J. Peerce
peercem@ballardspahr.com | 646.346.8039 | view full bio
Margie is a litigator who, in her more than 30 years of practice, has handled matters across the criminal and regulatory spectrum including white collar criminal defense, regulatory matters, and complex civil litigation. Her work includes cases arising from alleged violations of the Internal Revenue Code, the FCPA, the BSA, and a broad range of fraud investigations.
She represents numerous individuals in several AML/BSA investigations by the U.S. Department of Justice and has represented a financial institution in a matter implicating BSA issues. She has handled matters involving Suspicious Activity Reports and Currency Transaction Reports and structuring-related offenses and she has represented individuals accused of money laundering offenses. Margie has also handled a significant number of matters with the SEC, FINRA, and the CFTC.
Welcome to Money Laundering Watch: 2016 Year in Review
Posted in Anti-Money Laundering (AML), Bank, Bank Secrecy Act (BSA), Casino, Civil Penalty, Customer Due Diligence, Financial Action Task Force (FATF), Financial Crimes Enforcement Network (FinCEN), New York Department of Financial Services (NYDFS), Nonbank Lender, Panama Papers, Real Estate, State Enforcement
2016 was a busy year for developments in Anti-Money Laundering (AML), the Bank Secrecy Act (BSA), the criminal money laundering statutes, forfeiture, and related issues. In part one of our year-in-review, we discuss six key topics:
- The Panama Papers and its spotlight on the United States as a potential money laundering haven
- New Customer Due
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2016 Year in Review: NYDFS Finalizes Broad AML Regulations
By Peter D. Hardy, Marjorie J. Peerce & Brad Gershel on
The New York State Department of Financial Services (NYDFS) emerged in 2016 as a leader in AML enforcement by issuing new and detailed AML regulations with the unique requirement of an individual certification of compliance.
On June 30, 2016, the NYDFS finalized a new regulation setting forth rigorous standards for monitoring and filtering programs to monitor transactions for potential AML violations and block transactions prohibited by the Office of Foreign Assets Control (OFAC). The regulation, which became effective on January 1, 2017, applies to all banks, trust companies, private bankers, savings banks, and savings and loan associations chartered under the New York Banking Law (NYBL); branches and agencies of foreign banking corporations licensed under the NYBL to conduct banking operations in New York; and check cashers and money transmitters licensed under the NYBL (collectively, the Regulated Institutions). The NYDFS regulation is instructive to all financial institutions as a benchmark for future standards potentially to be issued by other states and/or federal regulators.
Continue Reading 2016 Year in Review: NYDFS Finalizes Broad AML Regulations
2016 Year in Review: NYDFS Fines Intesa Sanpaolo $325 Million for Alleged Repeated AML Violations
By Marjorie J. Peerce & Alexander Kommatas on
Capitalizing on its new AML regulations and perhaps attempting to seize the mantle of leading AML enforcement, the NYDFS announced several high-dollar value enforcement actions in 2016, all against foreign banks. For instance, on December 15, 2016, the NYDFS filed a consent order requiring Intesa Sanpaolo, S.p.A. to pay a $235 million civil monetary fine and extend the term of engagement with a NYDFS-appointed consultant for violations of the New York AML regulations.
Continue Reading 2016 Year in Review: NYDFS Fines Intesa Sanpaolo $325 Million for Alleged Repeated AML Violations