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FinCEN Launches Regulatory Process For AML Regulation on Antiquities

Richard Marley
September 24, 2021
2 minutes read
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The ANPRM discusses how antiquities trade can be exploited by money launderers and terrorist financiers to launder illicit funds through the US financial system.

FinCEN, the US financial intelligence unit, today published an Advance Notice of Proposed Rulemaking (ANPRM) regarding the introduction of Anti-Money Laundering (AML) regulations on the antique trading sector.

In particular, the ANPRM has been issued to solicit public comment on a range of questions related to the implementation of amendments to the Bank Secrecy Act (BSA) regarding the trade in antiquities.

This move marks the first step taken by FinCEN to implement Section 6110 of the Anti-Money Laundering Act of 2020 (AML Act), which became law on January 1, 2021.

“This regulatory action demonstrates FinCEN’s continued commitment to implement the AML Act,” said Acting Director Himamauli Das. “I encourage industry and other stakeholders to comment on this ANPRM, which will strengthen the outcome of the rulemaking process.”

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCen) released a notice highlighting the increase in online child sexual exploitation (OCSE) trends and tips on filing #SAR https://t.co/nH4k4sI25b pic.twitter.com/QK3tImj6s6

— ACAMS (@ACAMS_AML) September 21, 2021

Authorities and experts have long raised concerns regarding the largely unregulated market of art and antiquities, stating that this area is ripe for exploitation by organized criminals and terrorist groups. In particular, the ANPRM cites how antiquities trade can be exploited by money launderers and terrorist financiers to launder illicit funds through the US financial system.

Terrorist organizations, transnational criminal networks, and other fraudulent actors also seek to exploit antiquities to transfer value to acquire new sources of funds, evade detection, and launder proceeds from their illicit activities. Some terrorist groups have generated revenue from permitting or facilitating the illegal extraction or trafficking of antiquities in territories where they operate, states the FinCEN.

Comments are open for submission till October 25, 2021, for industry members and other interested parties, including casinos, depository institutions, the insurance industry, and other financial institutions.

Disclaimer: No warranty is herein provided that the information contained in this document is accurate, up-to-date, and/or complete. In no circumstance(s), does such information constitute legal or any other advice. Any person who intends to use, rely, pass-on, or re-publish the information contained herein in any way is solely responsible for the same. We suggest to verify the information and/or obtain expert advice independently if required.

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US Rated as The Most Secretive Financial Jurisdiction in the World
The US has been ranked the most secretive financial jurisdiction in the world due to deterioration prior to Financial Secrecy Indices (FSI), as per lax rules in US anti-money laundering (AML) and tax laws.

As per the Finacial Secrecy Index (FSI) 2022, the United States has been classified as the most secretive financial jurisdiction in the world. Due to the unaddressed loopholes and flexible rules in US tax and anti-money laundering (AML) laws, the US ranking is worsening prior to Financial Secrecy Indicies.

Ian Gary, Executive Director of the FACT Coalition stated “These findings point accusations towards US secrecy and should be a rallying cry for monetary clarity” While talking about the Biden Administration, he further said “The Biden Administration is continuously working for the making a number of anti-corruption reform for implying effective penalties. Now it is the responsibility of the Administration and the Congress to execute and fund them”.

Identified as the second most financial jurisdiction in the world in 2020 by FSI, Congress issued a Corporate Transparency Act (CTA). The CTA will put restrictions by requiring corporations and similar entities to register their authentic beneficial owners to a central directory maintained by the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department.

The expected rule was to be enforced on January 1, 2022, but only one of the three proposed rulemaking has been implemented till now due to the funding and capacity constraints of FinCEN.

“To fight corruption, we need to execute the CTA Act and for that purpose, we need to generate funding for FinCEN now” as made evident by Congresswoman Carolyn B. Maloney, the co-author of the CTA.

The US treasury is devoted to only finalising rules executing the CTA Act by 2024, as made clear in the “National Strategy for Combating Terrorist and Other Illicit Financing” report on Friday. These structural reforms will authorise law enforcement and national security officials to refrain from the sanctions “whack-a-mole” in favour to comprehend the nature of US entity ownership and tackle large-scale sanctions evasion.

The 2022 International Anti-Corruption Conference to be held in Washington, D.C. later this year has been called in for the final implementation of the CTA Act, whose delays have been warned by the FACT Coalition.

Suggested Read: US DOJ Stresses Disclosure of Beneficial Ownership Information to Curb Illicit Finance

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FinCEN Launches Regulatory Process For AML Regulation on Antiquities

Risks Faced by Financial Institutions

KYC – Identity Verification

Transaction Monitoring

Additional Authentication Measures

How the Payments Industry can Be Fraud-Free

What Shufti Pro Offers

Let’s prove your

customer’s identity

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Let’s prove your customer’s

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