New FinCEN advisory warns against funds linked to Ortega regime.
FinCEN issued a new advisory on October 4, 2018 warning financial industry professionals about the potential for proceeds of crime and corruption from senior political figures, specifically those linked to the regime of Nicaraguan President Daniel Ortega, entering into the U.S. financial system.
FinCEN is asking for institutions to pay close attention to the movement of funds that could be associated with this geographic region or adjacent politically exposed persons (PEPs), and to file SARs as appropriate. You can read about certain known transaction patterns used by foreign political figures to facilitate access to the U.S. Financial system in an advisory previously released by the agency here.
This most recent advisory highlights program requirements that should be in place around private banking accounts for non-U.S. persons, and institutions’ ongoing obligation to implement due diligence around correspondent accounts maintained for foreign financial institutions. Strong programs in these areas will assist in the detection and reporting of activity transacted by senior political figures associated with the regime.