Anti-Terrorism Efforts Lead to Enhanced Scrutiny of US Financial Institutions

13 Dec 2006 13:03:00
Author : Florida International Bankers Association

Concerned with the growing threat of terrorism and the dissemination of weapons of mass destruction, the US government is keeping a close eye on financial institutions to ensure that they are steering clear of "blacklisted" people, entities and countries. FIBA (Florida International Bankers Association), a highly regarded trade association which focuses on international AML (anti money laundering) compliance, will address this issue at their February conference in Miami.

"OFAC (Office of Foreign Asset Control) penalties can be extreme and fairly draconian. To stay ahead of the game, every bank should expect that its examiners are going to be looking at this and they should be prepared for it," said Gregory A. Baldwin, an OFAC expert with Holland & Knight Attorneys at Law, and one of the speakers at the FIBA Annual Anti Money Laundering Conference (Feb 12-14, 2007) in Miami.

On December 1, OFAC released its latest lot of enforcement actions, which consisted of hundreds of thousands of dollars in penalties. According to a recent Miami Herald article, Swiss banking giants UBS and Credit Suisse ceased doing business with Cuba because of OFAC sanctions that affect the transfers of U.S. dollars. In 2004, OFAC fined a major global bank $100 million for swapping old dollar bills for new ones for countries under OFAC sanctions.

"We will address a number of issues," said Baldwin, who will represent Holland & Knight on the panel. "What do you do when you have a problem? What do you do when OFAC wants to fine you?"

Attendees will also have the rare opportunity to hear a keynote speech from Barbara C. Hammerle, OFAC's deputy director, who will shed light on the agency's expectations.

"The Florida International Bankers Association (FIBA) is ideally suited to provide guidance on this topic," Roth concluded. "FIBA is a 25 year old trade association, with a membership of more than 80 banks from 18 countries across 4 continents. FIBA's members have been active in international banking and finance for more than two decades and it was in Miami where the original software used by banks to screen the OFAC lists against bank customers was developed."

Florida International Bankers Association

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