Regulatory and Government Affairs
With the increasing frequency and severity of anti-money laundering (AML) penalties, the business need for AML regulatory counseling and enforcement defense has never been greater. WilmerHale is a recognized leader in both areas, representing banks, broker-dealers, and other traditional financial institutions, and also institutions such as mutual funds, insurance companies, hedge funds, investment advisers, money services businesses and others that historically have not had to address AML issues.
Anti-Money Laundering Expertise
WilmerHale’s experience in AML matters includes the following:
Counseling
- Drafting client AML compliance programs and modifying existing programs, including the development of customer risk categories and related procedures and enterprise-wide compliance;
- Assisting institutions with detailed operational adjustments to comply with their AML programs;
- Advising clients on an array of compliance issues facing domestic and foreign institutions, such as determining:
- Who constitutes a “customer” subject to customer identification requirements;
- What constitutes a “foreign financial institution” subject to additional due diligence;
- What level of due diligence should be performed on beneficial owners;
- What types of alternative payment mechanisms make the provider a money services business;
- What procedures should be applied to high-risk customers and transactions;
- What records must be maintained for purposes of the customer identification, travel rule and other AML requirements;
- When and how to file suspicious activity and other required reports;
- When and how AML program components can be delegated to other institutions;
- How to utilize the information-sharing provisions of the USA PATRIOT Act; and
- How to synthesize rules administered by the Office of Foreign Assets Control with an AML program;
- Counseling banks on analyzing the risks of servicing money services businesses and advising money services businesses on how to comply with relevant regulations; and
- Helping to shape AML regulations by preparing formal comment letters and meeting with key government officials.
Transactions
- Advising introducing and clearing brokers on division of AML and OFAC responsibilities and related terms of clearing agreements;
- Counseling mutual funds, mutual fund advisors and transfer agents on AML-related terms of transfer agency agreements;
- Drafting appropriate AML and OFAC provisions for offering documents, subscription booklets, and private placement memoranda for hedge funds and private equity funds;
- Assessing the Bank Secrecy Act compliance of targets in acquisition scenarios; and
- Assisting broker-dealers with drafting AML and OFAC representations and covenants for investment advisers.
Litigation/Enforcement/Investigations
- Helping clients work informally with regulators, and law enforcement agencies, and Congressional committees, to avoid investigations and enforcement actions;
- Responding to subpoenas issued under the USA PATRIOT Act or other authorities;
- Defending against formal enforcement actions; and
- Resolving forfeiture actions that often arise from AML matters.
- Illustrative representations include:
- Responding to Congressional inquiries regarding foreign corruption;
- Responding to OCC inquiries about the failure to file Suspicious Activity Reports;
- Conducting an internal bank investigation regarding the failure to file Currency Transaction Reports;
- Defense of a state member bank in an AML action by the Federal Reserve Board;
- Defense of controlling shareholders of a national bank in an AML action by the OCC for alleged BSA violations and breaches of fiduciary duty; and
- Defense of outside directors of Riggs National Corporation in connection with a major AML regulatory and criminal enforcement case involving the OCC, Federal Reserve Board and Department of Justice.
WilmerHale’s core anti-money laundering team includes lawyers with key senior government experience in anti-money laundering regulation and policy. The team draws on the expertise of lawyers in our Securities, Financial Institutions, Investigations and Criminal Litigation and International Banking practices. For information about our OFAC compliance practice, please refer to our brochure,
Export Controls and Economic Sanctions.