Financial crimes

An amendment to the National Defense Authorization Act would expand access to the Financial Crimes Enforcement Network's beneficial ownership database. That would allow financial firms to cut off drug traffickers' financing.

A hearing included discussion of European laws that will put banks on the hook for fraud schemes, and whether the U.S. needs a digital identity standard.

A new OCC action over the megabank's anti-money-laundering guardrails, which follows news of seemingly more severe lapses at TD Bank, is raising concerns that a broader crackdown is at hand.

The penalty by the Office of the Comptroller of the Currency is a major setback for the San Francisco bank, which was freed from a separate anti-money-laundering order in 2021. Its stock price fell sharply after the news broke.

Reports of fraud committed against financial companies are on pace to, for the first time, fall this year compared with 2023. Consumer reports of fraud are also down.

Shutting down Telegram could disrupt fraudsters targeting banks, according to experts. With charges against CEO Pavel Durov, the idea appears more than hypothetical.

New rules from Treasury's Financial Crimes Enforcement Network will mandate reporting for non-financed real estate transfers and expand anti-money-laundering requirements for investment advisors.

The New York State Department of Financial Services issued a consent order against Finland-based Nordea Bank, citing deficiencies related to the Bank Secrecy Act and anti-money-laundering requirements.

The Toronto-based bank also expects a "global resolution" of investigations by U.S. authorities to be finalized by the end of the year.

Shan Hanes, the former leader of Heartland Tri-State Bank, previously pleaded guilty to embezzling tens of millions of dollars in a cryptocurrency scheme that caused the Kansas bank's failure.