quora
Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

FinCEN Alerts FIs of Sanction Evasion by Russian Entities Implicated in U.S. Commercial Property Investments

n-img-fincen

FinCEN alerted all the Financial Institutions warning about the risk of investment from sanctioned Russian elites.

FinCEN (Financial Crimes Enforcement Network) issued an alert to financial institutions on 25th January 2023, mentioning the risk of investment by Russian oligarchs, elites and their families in real estate.

 The report is an update to the previously published alert from March 2022 regarding the ongoing conflict in Ukraine. This alert marks the sector on notice that financial firms are monitoring the commercial real estate sector for instances of money laundering and evasion by the sanctioned Russians.

The report identifies several weak points that expose the US commercial real estate market to potential sanction evasion. Here are some vulnerabilities noted by FinCEN:

  • The stability of the U.S. commercial real estate market and its high-value commercial real estate properties make such investments ripe for generating steady income and storing large volumes of illicit wealth.
  • Commercial real estate transactions implicate complicated financing methods that lack transparent ownership structures.
  • Lack of transparency can supply a conveyance for fraudsters to suppress illegal funds within commercial real estate investments.

In addition to mentioning the reasons for additional diligence, FinCEN also highlighted some red flags for real estate transactions.

  • The buy, sale, contribution, or legal ownership transfer of a high-value real estate in place of a foreign legal entity, shell company or trust, especially if the transaction: (i) is far above or below fair market value, (ii) involves all-cash transfers, or (iii) is funded by a third party with a known nexus to sanctioned Russian elites and their proxies.
  • Using permitted commodities or arrangements with a nexus to sanctioned Russian elites and their proxies to disguise the real beneficiary or fund’s roots or sources.
  • Modifications, without an evident business reason, to the transaction patterns of a firm located in a country other than the United States, Russia, Belarus and Ukraine, where the new transactions involve convertible virtual currency and Russian-related investments or firms.

The latest alert from FinCEN focuses on these red flags; the Department of Justice’s OFAC (Office of Foreign Assets Control) has been tracking the channels since the Russian sanctions took effect last year. It also provides due diligence guidance for FIs, insurance firms, and other parties that perform commercial or real estate transactions. 

Suggested Read:

FINCEN AND FDIC TO TEST THE EFFECTIVENESS OF DIGITAL ID VERIFICATION TOOLS

Related Posts

News

FCA Fines TJM Partnership Limited £2 Million for Money Laundering

The Financial Conduct Authority has fined the investment firm TJM Partnership Limited £2m for ser...

FCA Fines TJM Partnership Limited £2 Million for Money Laundering Explore More

News

France to Test Digital Currency in the First Quarter of 2020

The digital currency race is building up and every country wants to take part in it. Now, Banque ...

France to Test Digital Currency in the First Quarter of 2020 Explore More

News

Officials Concerned about the Russian Money Laundering Done Through the UK

The top officials in the UK have shown their concerns about the disturbing regularity of the Russ...

Officials Concerned about the Russian Money Laundering Done Through the UK Explore More

News

Crypto firms Halt Business in China After an Intense Government Crackdown

Cryptocurrency businesses have stopped their operations after the government led an intense inves...

Crypto firms Halt Business in China After an Intense Government Crackdown Explore More

News

Lake County Attorney Launches a Financial Crimes Unit to Combat Fraud

Lake County state’s attorney announced a new Financial Crimes Unit to deal with money laundering,...

Lake County Attorney Launches a Financial Crimes Unit to Combat Fraud Explore More

News

UK Publishes First National Risk Assessment of Proliferation Financing

The UK is at a high risk of proliferation financing for Korea and Iran, while UK financial instit...

UK Publishes First National Risk Assessment of Proliferation Financing Explore More

News

Europol & Budapest Police Arrest Criminal Group for Laundering EUR 44 Million

The Budapest Metropolitan Police along with Europol have arrested a criminal group involved in mo...

Europol & Budapest Police Arrest Criminal Group for Laundering EUR 44 Million Explore More

News

Online Gambling Operator Penalized Over Failure to Meet Anti-Money Laundering Regulations

Boylesports, an online gambling operation is facing £ 2.8 million in fines for violating the regu...

Online Gambling Operator Penalized Over Failure to Meet Anti-Money Laundering Regulations Explore More

News

13K Affected in Third-Party Data Breach at Anthem MaineHealth

A third-party service provider accessed the database of Anthem MaineHealth and obtained patients’...

13K Affected in Third-Party Data Breach at Anthem MaineHealth Explore More

News

Authorities Struggle in Mexico as Cartels Use Crypto for Laundering Funds

The head of financial intelligence in Mexico has revealed that the law enforcement authorities ar...

Authorities Struggle in Mexico as Cartels Use Crypto for Laundering Funds Explore More

News

MENAFATF Adopts Abu Dhabi Recommendations to Counter Money Laundering and Terrorism Financing

An international group based on the FATF format, MENAFATF, has adopted the Abu Dhabi recommendati...

MENAFATF Adopts Abu Dhabi Recommendations to Counter Money Laundering and Terrorism Financing Explore More

News

Nonprofit Guam Shrine Club Under Fire for Alleged Illegal Gambling and Money Laundering

Seven people, three GSC officers and four other individuals from Guam Shrine Club, a nonprofit or...

Nonprofit Guam Shrine Club Under Fire for Alleged Illegal Gambling and Money Laundering Explore More

News

Panama & the Cayman Islands’ AML Efforts May Lead to Removal From FATF Gray List

According to the Paris-based watchdog, Financial Action Task Force (FATF), Panama and the Cayman ...

Panama & the Cayman Islands’ AML Efforts May Lead to Removal From FATF Gray List Explore More

News

Russians Turn To Crypto As the West Imposes Financial Sanctions

Data has shown that Russians are turning towards transactions in cryptocurrency as a result of we...

Russians Turn To Crypto As the West Imposes Financial Sanctions Explore More

News

Rapstar Captured for His Role in Wire Fraud Scheme

A famous rapper from Chicago with his crew members was caught and charged in court for using the ...

Rapstar Captured for His Role in Wire Fraud Scheme Explore More

News

MBSB Bank to Implement BNM’s Requirements for Combating Financial Crimes

Bank Negara Malaysia announced additional security measures for financial institutions to strengt...

MBSB Bank to Implement BNM’s Requirements for Combating Financial Crimes Explore More

News

China Announces New Office To Combat Money Laundering

An office devoted to combating money laundering and ensuring financial institutes comply with Ant...

China Announces New Office To Combat Money Laundering Explore More

News

IRS Highlights Potential Risk of Fraud in NFTs and Cryptocurrencies

IRS highlights Non-Fungible Token (NFTs) and crypto as the potential risk of financial crimes, in...

IRS Highlights Potential Risk of Fraud in NFTs and Cryptocurrencies Explore More

News

UK FCA Orders Illegal Crypto Service Providers to Shut Down ATMs

The UK’s Financial Conduct Authority has ordered crypto firms operating illegally in the country ...

UK FCA Orders Illegal Crypto Service Providers to Shut Down ATMs Explore More

News

Chinese Tech Groups Shaping UN Facial Recognition Standards

Leaked documents reveal that Chinese tech giants are developing the United Nations’ standards for...

Chinese Tech Groups Shaping UN Facial Recognition Standards Explore More

News

UAE Praises Singapore’s S$2.8b Financial Crime Bust

The director-general of UAE anti-money laundering and counter-terrorism financing commends Singap...

UAE Praises Singapore’s S$2.8b Financial Crime Bust Explore More

News

NDAA Passed to Strengthen the Financial Crime Monitoring in the USA

The House of Representatives has passed the National Defense Authorization Act to strengthen the ...

NDAA Passed to Strengthen the Financial Crime Monitoring in the USA Explore More

News

NAB and CBA Exposed Over PNG Money Laundering Case

NAB and CBA have been given a “formal warning” instead of criminal charges, as the PNG regulator ...

NAB and CBA Exposed Over PNG Money Laundering Case Explore More

News

Financial Watchdogs in South Korea Add Guidelines for Crypto Transactions

Financial Watchdogs in South Korea will now oversee the activities regarding crypto in the countr...

Financial Watchdogs in South Korea Add Guidelines for Crypto Transactions Explore More

News

US drug agency failed to properly oversee crypto investigations

It was published in the IG report, which is an audit of “income-generating, undercover operations...

US drug agency failed to properly oversee crypto investigations Explore More

News

Online Gaming Company Fined €386,000 for AML Failings

Online Amusement Solution Limited, a gaming company, was fined more than €386,000 by the FIAU for...

Online Gaming Company Fined €386,000 for AML Failings Explore More

News

Massive Cyberattack on Australia Uses Cryptojacking Exploits

According to the Australian Cyber Security Centre, a group of “state actors” hacked Australian ne...

Massive Cyberattack on Australia Uses Cryptojacking Exploits Explore More

News

Credit Union Identity Theft Investigation Handed Over to Federal Prosecutors

NY Police have handed over the investigation of a $100,000 ID theft ring allegedly involving a fo...

Credit Union Identity Theft Investigation Handed Over to Federal Prosecutors Explore More

News

AUSTRAC Initiates Probe into Sportsbet and Bet365 over Money Laundering Suspicions

AUSTRAC launches investigations into gambling firms for suspicions of failing AML/CFT compliance,...

AUSTRAC Initiates Probe into Sportsbet and Bet365 over Money Laundering Suspicions Explore More

News

Pandora Papers Highlight ‘Gatekeepers’ of Black Money, says EU Financial Watchdog

The new report of MONEYVAL offers a diminishing rebuke across European governments that are unabl...

Pandora Papers Highlight ‘Gatekeepers’ of Black Money, says EU Financial Watchdog Explore More

News

US Launches National Cryptocurrency Enforcement Team

The National Cryptocurrency Enforcement Team will aid the US Department of Justice (DOJ) in disma...

US Launches National Cryptocurrency Enforcement Team Explore More

News

US Government Announces Reward for Identifying Sanctioned Russian Assets

The US government has announced financial rewards of up to $5 million for information leading to ...

US Government Announces Reward for Identifying Sanctioned Russian Assets Explore More

News

Shufti Crosses One More Milestone With Its New Ukraine Office

May 2021 – As part of our plan for global expansion, Shufti is thrilled to announce the...

Shufti Crosses One More Milestone With Its New Ukraine Office Explore More

News

Iran’s Finance Ministry Releases List of Individuals Suspected of Money Laundering

The Finance Ministry of Iran has released its first list of individuals suspected of having links...

Iran’s Finance Ministry Releases List of Individuals Suspected of Money Laundering Explore More

News

BitGo settles with US Treasury; Sanctions Violations will Cost $98,830

The U.S. Treasury has settled with BitGo over costs that it helped users in authorised divisions ...

BitGo settles with US Treasury; Sanctions Violations will Cost $98,830 Explore More

News

South Africa Enforces New Rules to Transfer Funds Abroad

The South African Revenue Service (SARS) has made regulatory changes to transfer funds overseas, ...

South Africa Enforces New Rules to Transfer Funds Abroad Explore More

News

BSP Warns Play-to-Earn Gamers about Potential Illicit Activities

Online gaming platforms should employ KYC verification processes to make payments more secure.  T...

BSP Warns Play-to-Earn Gamers about Potential Illicit Activities Explore More

News

US Court Declares Bitcoin and ETH as Commodities, Dismissing Uniswap Lawsuit

A US court dismissed the Security Exchange Commission (SEC) lawsuit against the Uniswap protocols...

US Court Declares Bitcoin and ETH as Commodities, Dismissing Uniswap Lawsuit Explore More

News

Shufti beats 26 global competitors in the Video KYC challenge at MEFTECH KSA

Yesterday, February 26, Shufti was announced the winner of the Lulu money’s Video KYC for Cus...

Shufti beats 26 global competitors in the Video KYC challenge at MEFTECH KSA Explore More

News

TD Bank Agrees to Pay USD 1.2 Billion to Settle Investor Lawsuit

Toronto-Dominion Bank has agreed to pay US $1.2 Billion to settle an investor lawsuit which claim...

TD Bank Agrees to Pay USD 1.2 Billion to Settle Investor Lawsuit Explore More

News

Leading MSB Industry Associations Introduce Best Practices For Anti-Money Laundering

The introduction of the best practices for anti-money laundering by leading MSB industry associat...

Leading MSB Industry Associations Introduce Best Practices For Anti-Money Laundering Explore More

News

Pinterest Enhances Age Verification Measures to Protect Users Under 16

Pinterest reveals a new series of security features to make its platforms secure for teens. These...

Pinterest Enhances Age Verification Measures to Protect Users Under 16 Explore More

News

Egypt to Enact Updated AML Legislations and Develop Action Mechanisms to Curb Financial Crimes

Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU) is all set to enact revi...

Egypt to Enact Updated AML Legislations and Develop Action Mechanisms to Curb Financial Crimes Explore More

News

Council of Europe Shows Support to Serbian Authorities For Combating Money Laundering

The Council of Europe stays dedicated to showing support to authorities for fighting money-launde...

Council of Europe Shows Support to Serbian Authorities For Combating Money Laundering Explore More

News

Americans Lose $3.82 Billion to Crypto and ‘Phantom Property’ Investment Scam

The American public is being alerted to the proliferation of fraudulent investment schemes. Crypt...

Americans Lose $3.82 Billion to Crypto and ‘Phantom Property’ Investment Scam Explore More

News

The Rise of FinTech Services can Spur Financial Risk: Says U.S. Bank Regulator

According to the US bank regulator, banks and the fintech alliance for a seamless customer experi...

The Rise of FinTech Services can Spur Financial Risk: Says U.S. Bank Regulator Explore More

News

World economic forum considers using blockchain to solve supply chain crisis

The World Economic Forum (WEF) stated on Monday that blockchain and digitization can help supply ...

World economic forum considers using blockchain to solve supply chain crisis Explore More

News

Coronavirus: UK economy recovering gradually, says Bank of England

Bank of England (BOE) governor, Andrew Bailey, stated that there are signs of the UK economy grad...

Coronavirus: UK economy recovering gradually, says Bank of England Explore More

News

Crypto Adoption on the Rise, PayPal will Offer Crypto Payments in 2021

In the digital era, companies are shifting toward digital means of communication. Banks have plan...

Crypto Adoption on the Rise, PayPal will Offer Crypto Payments in 2021 Explore More

News

Joint ATO Operation Busts $137m Fraud Ring

The Australian Border Force (ABF) and the Serious Financial Crime Taskforce (SFCT) have jointly i...

Joint ATO Operation Busts $137m Fraud Ring Explore More

News

FATF: US largely complacent with virtual currency regulations

The Financial Action Task Force (FATF) has rated the U.S. “largely compliant” with its revised cr...

FATF: US largely complacent with virtual currency regulations Explore More

News

‘Left in Limbo’: Cryptocurrency Exchanges React to FCA Registration Deadline

Today is the deadline for the digital currency firms to be registered with the UK’s financial reg...

‘Left in Limbo’: Cryptocurrency Exchanges React to FCA Registration Deadline Explore More

News

Cambodia and China Strengthen Ties to Combat Illegal Online Gambling and Scams

China’s Premier Li Keqiang and Cambodia’s PM Hun Sen have given a green signal to strengthen thei...

Cambodia and China Strengthen Ties to Combat Illegal Online Gambling and Scams Explore More

News

FATF Reveals Qatar’s Failure to Enforce Crypto Ban to Combat Money Laundering

Qatari authorities have taken naive action against crypto companies that violated a ban announced...

FATF Reveals Qatar’s Failure to Enforce Crypto Ban to Combat Money Laundering Explore More

News

UAE Deploys Hi-Tech Measures to Combat Money Laundering

The UAE has intensified its measures in the fight against money laundering and terrorism financin...

UAE Deploys Hi-Tech Measures to Combat Money Laundering Explore More

News

Ripple CEO urges US Regulators to embrace Crypto

Brad Garlinghouse, CEO Ripple has encouraged the US regulator “to step up and lean into digital c...

Ripple CEO urges US Regulators to embrace Crypto Explore More

News

Nigerian Crypto Firms Adopts KYC Measures to Comply with CBN’s Directives

The Nigerian crypto exchanges have started complying with the directives provided by the Central ...

Nigerian Crypto Firms Adopts KYC Measures to Comply with CBN’s Directives Explore More

News

Brazil to Introduce Facial Recognition to Verify People Wearing Masks at Airports

Countries across the globe are taking necessary steps to introduce facial recognition at the airp...

Brazil to Introduce Facial Recognition to Verify People Wearing Masks at Airports Explore More

News

UK Regulatory Authorities Warns Crypto Firms to Comply with Latest AML Obligations

The UK regulatory department, Financial Conduct Authority (FCA), has warned cryptocurrency platfo...

UK Regulatory Authorities Warns Crypto Firms to Comply with Latest AML Obligations Explore More

News

Cryptocurrency Fraud Reports to UK Action Fraud More Than Double in 2021

The study advises financial regulators to place more pressure on cryptocurrency institutions to c...

Cryptocurrency Fraud Reports to UK Action Fraud More Than Double in 2021 Explore More

News

A European Money-Laundering Network Captured by French National Gendarmerie

A money-laundering network in France was under investigation for 18 months by French National Gra...

A European Money-Laundering Network Captured by French National Gendarmerie Explore More

News

Coronavirus affects challenger banks as app downloads decline

According to Finbold, top challenger banks in the United Kingdom have noticed a sudden decline in...

Coronavirus affects challenger banks as app downloads decline Explore More

News

ACCC Calls for Heavy Penalties to Make Tech Giants Scam-free

The Australian Competition and Consumer Commission (ACCC) has demanded severe penalties linked to...

ACCC Calls for Heavy Penalties to Make Tech Giants Scam-free Explore More

News

Turkey to Face FATF’s Gray List Over Inadequate AML Practices

FATF is set to grey list Turkey over AML shortcomings, a move that is likely to affect the countr...

Turkey to Face FATF’s Gray List Over Inadequate AML Practices Explore More

News

State Street Bank fined $1.24 million for breaching AML laws

The US-based State Street bank has been hit with million-dollar money laundering fine. The Austra...

State Street Bank fined $1.24 million for breaching AML laws Explore More

News

Crypto Bank Anchorage Has Inadequate AML Measures, Says US Federal Regulator

A US federal regulator has said that the first federally-chartered digital asset bank Anchorage D...

Crypto Bank Anchorage Has Inadequate AML Measures, Says US Federal Regulator Explore More

News

UAE’s Economic Integration Committee Highlights Files of Mutual Investigation with FATF

In the latest Economic Integration Committee meeting, the UAE’s financial regulatory authorities ...

UAE’s Economic Integration Committee Highlights Files of Mutual Investigation with FATF Explore More

News

UAE Extends the Deadline for DNFBPs to Register for AML Regulations

The Ministry of Economy (MoE) in Abu Dhabi has announced the deadline extension for the registrat...

UAE Extends the Deadline for DNFBPs to Register for AML Regulations Explore More

News

Qatar Takes Steps to Strengthen its AML/CFT and Sanctions Compliance

A webinar organised by ICC Qatar emphasised the efforts of Qatar to strengthen its AML/CFT and sa...

Qatar Takes Steps to Strengthen its AML/CFT and Sanctions Compliance Explore More

News

Banks Ordered by BSP to Enhance the Filing of Suspicious Reports

MANILA, Philippines – In an attempt to ramp up its fight against financial crimes, the Bang...

Banks Ordered by BSP to Enhance the Filing of Suspicious Reports Explore More

News

Central Bank of Morocco to Introduce a Comprehensive Crypto Regulation Bill

Morocco’s Central Bank is drafting a set of comprehensive cryptocurrency laws as the digital asse...

Central Bank of Morocco to Introduce a Comprehensive Crypto Regulation Bill Explore More

News

Global regulators propose stricter scrutiny of derivatives clearers amidst deadlock with banks

LONDON – Global regulators have suggested greater scrutiny of clearinghouses managing trill...

Global regulators propose stricter scrutiny of derivatives clearers amidst deadlock with banks Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started