Financial Crimes Enforcement Network Compliance
The Financial Crimes Enforcement Network (FinCEN) is an agency within the U.S. Department of the Treasury that is dedicated to the fight against money laundering. FinCEN was created in 1990, and later broadened in 1994 and 2001, to include the administrative responsibilities of the Bank Secrecy Act and to combat terrorist financing as well.
Specifically, FinCEN establishes a line of communication between financial institutions, law enforcement agencies, and federal regulators to help detect illegal financial activity and individuals or businesses engaged in terrorist or narcotics activities. In conjunction with Title III, Section 314 of the USA PATRIOT Act, FinCEN sends its list of suspicious persons and organizations (updated bi-weekly) to selected financial institutions. In response, each financial institution must report any matches between the list and their client information. FinCEN then relays any reported matches to the proper authorities for further investigation.
Who Does This Affect?
FinCEN's overall mission is to “enhance U.S. national security, deter and detect criminal activity, and safeguard financial systems from abuse.”* In order to carry out this responsibility effectively, the federal government requires nearly every type of financial institution to comply with FinCEN regulations. These targeted financial institutions include:
- Commercial and retail banks and credit unions
- Short-term money lenders and money transfer agents
- Securities dealers and brokers
- Insurance companies offering certain products or underwriting services
- Members of the gaming industry
- Dealers of precious metals and other high-value commodities
FinCEN has been a reliable network of resources devoted to fraud prevention and identity theft protection for decades. Financial institutions all over the country are required to abide by FinCEN recordkeeping regulations so as to avoid contributing to illegal financial activity.
* See the U.S. Department of the Treasury's official FinCEN homepage at www.fincen.gov for more information.
How Does EVS Help?
With our wide array of verification and watch list products, EVS can manage watch list comparison procedures for financial institutions. Through a single lookup, you can compare your client data to the FinCEN list and receive notification for any direct matches. Our products can also provide an audit trail to verify your organization's due diligence should your compliance process ever come into question.
With an EVS partnership, you can ensure your organization's compliance measures with one straightforward query. It's the smart way to combat illegal financial activity.