Anti-Money Laundering

U.S. Anti-Money Laundering Law

AML laws continue to evolve and the definition of “Financial Institution” continues to expand, with complex legal environments at both the federal and state-level. We advise on these issues along with sanctions; emerging FinTech, online and digital-asset issues; AML statutes; and both civil and criminal enforcement.

Federal Financial Regulation. We advise a diverse range of clients at the federal level on FinCEN, Bank Secrecy Act (BSA), USA PATRIOT Act, the Anti-Money Laundering Act of 2020 (AMLA), and FINRA matters. In addition, we work extensively with the Office of Comptroller of the Currency (OCC), Federal Reserve Board, Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), Office of Thrift Supervision, and Commodity Futures Trading Commission (CFTC). This enables us to understand the full spectrum of U.S. financial regulatory regimes and “bridge the gap” between AML and traditional supervisory and enforcement personnel.

State Financial Regulation. Our team includes former state regulators with expertise on the complex regulations that apply to non-depository institutions licensed under state banking laws. We advise on New York state financial regulatory matters, including the New York Department of Financial Services (DFS) transaction monitoring rules (3 NYCRR 504) and enforcement actions. This includes work with both U.S. and non-U.S. financial institutions. In addition, we advise on state money transmission rules around the country, and interact daily with state officials on behalf of clients.

Sanctions. The firm’s leading U.S. and global sanctions practice helps clients to address sanctions issues in the AML context and liaise with Treasury’s Office of Foreign Assets Control (OFAC). U.S. sanctions policies can have a dramatic impact on the activities of financial institutions (U.S., multinational and non-U.S.) as well as other businesses. We also advise clients on the overlap of OFAC sanctions and FinCEN “special measures” imposed on jurisdictions and banks.

AML in the Online World and FinTech. We advise clients at the cutting edge of AML policy in the digital age – FinTech, virtual currency, digital assets, blockchain technologies, online financial business matters, privacy and data/cyber security. Pillsbury guides clients in these emerging fields on AML laws, regulations and compliance obligations. We also assist clients in conducting risk assessments in the AML context. This includes AML challenges relating to electronic banking, prepaid and gift cards, online payments, e-commerce, and online gambling.

Enforcement, Investigations and White Collar AML Matters. Pillsbury attorneys have extensive experience in representing financial institutions and their officers and directors in a wide variety of regulatory enforcement actions, internal compliance matters, criminal investigations and related civil litigation. We also advise on U.S. criminal anti-money laundering laws under 18 U.S.C. §§ 1956 & 1957 in the context of transactions, funds and financing.

EU and UK Anti-Money Laundering Laws

Throughout the European Union and in the United Kingdom, AML requirements are becoming increasingly complicated and comprehensive. BREXIT and potential divergence of UK/EU law is expected only to add further complexity.

Our attorneys continually monitor AML and sanctions developments and provide client advice, including in relation to the extension of EU and UK AML laws to the art market and virtual currencies. Attorneys from our London office regularly liaise with the relevant UK authorities in this sector including the Financial Conduct Authority (FCA), HM Treasury and HMRC on regulatory, compliance and transactional matters. Our attorneys can provide guidance on all key pieces of legislation in the UK including on the Proceeds of Crime Act 2002, Terrorism Act 2000, Money Laundering Regulations 2017, Sanctions and Anti-Money Laundering Act 2018 and any amending legislation. We also closely monitor European Union AML laws and their impact on national legal regimes within the European Union.

Asia, Middle East and Latin America Anti-Money Laundering Laws

Pillsbury’s Beijing, Shanghai, Hong Kong, Tokyo and Taipei offices offer experience in financial and AML rules in China, Japan and throughout Southeast Asia. Our Korea and Myanmar/Burma practitioners can also offer AML support relating to either of those countries. Finally, we have broad experience in India and an established network of local law firms to address AML and financial regulatory issues.

In the Middle East, our attorneys have advised sovereign governments and private companies on banking, business and company formation. Our deep knowledge of Sharia law and Islamic finance allows Pillsbury to support clients at the intersection of AML compliance and cultural considerations.

Our Latin America team has experience throughout the Americas and can advise on AML issues that arise anywhere in the Western Hemisphere. Our attorneys regularly practice in Spanish and Portuguese and have a deep understanding of the culture and sensitivities of this region.

Financial Action Task Force (FATF)

We are long-standing advisors on FATF policy trends and their effects on national AML policies around the world. The FATF and FATF-style regional bodies together have quietly become one of the more influential institutions in the global financial system. Via its “FATF Recommendations” (previously the “40 Recommendation”) the FATF sets standards for AML, counter-terrorist-financing and counter-proliferation policy, as well as for how governments cooperate and share information to combat AML, sanctions, anti-corruption and tax-compliance challenges. The FATF and regional bodies also assess compliance of nations with the FATF Recommendations and identify jurisdictions that present risks or require counter-measures—both of which can impact banks and businesses active in, or having clients or correspondent accounts from, such jurisdictions.

Addressing AML Challenges

Compliance Planning. We frequently advise our clients on compliance planning to address AML, sanctions and other regulatory challenges. On the AML side, this advice includes devising, implementing and adjusting policies, procedures and controls while developing appropriate risk-based approaches. Our multi-disciplinary insight allow us to help clients integrate AML compliance policies and identify issues that may affect particular clients or industries.

Internal Investigations. Our financial, regulatory and white-collar teams have the capacity to plan and execute sensitive investigations in the United States and around the world.

Transactions and Due Diligence. We support funds, financial institutions, private equity groups, and traditional businesses in addressing AML and related challenges in the context of transactions. These are key deal-risk issues, and we offer clients both legal knowledge and practiced judgment in the transactional context.

White Collar Defense. Should regulators, prosecutors, government investigators or legislative committees probe our clients' activities, our team has the capacity to advise, prepare and defend our clients.