Anti-Money Laundering
Wilson Sonsini Goodrich & Rosati provides advice regarding anti-money laundering (AML) rules (a subset of which are sometimes referred to as “Know Your Customer” or “KYC” rules), AML internal investigations, and government inquiries and enforcement actions. We draw on our experience with technology companies, large and small financial institutions, and service in the U.S. government as regulators and prosecutors addressing money laundering and related matters.
Wilson Sonsini’s AML team regularly counsels clients regarding:
- the scope and applicability of AML rules including, for example, whether a technology company might be considered a “money transmitter” or “money services business”;
- requirements to register with the Financial Crimes Enforcement Network (FinCEN);
- how to develop and implement an AML program, including KYC provisions and any obligations to file reports, such as currency transaction reports and suspicious activity reports;
- relationships and synergies between AML obligations and economic sanctions compliance, particularly regarding Office of Foreign Assets Control (OFAC) regulations
- the meaning and relationship among myriad AML jargon terms, including the Bank Secrecy Act, the USA PATRIOT Act, the Financial Action Task Force (FATF), a Customer Identification Program (CIP), Politically Exposed Persons (PEPs), and similar terms;
- AML matters arising during transactional due diligence, including risk assessment and negotiating terms to mitigate risk;
- the interplay between AML regulations and criminal money laundering statutes (primarily 18 USC 1956 and 1957);
- conducting internal AML investigations
- responding to government AML inquiries and enforcement actions
We often combine our AML services with other Wilson Sonsini practices, including anti-corruption compliance; white collar defense; technology transactions; fund formation; investments; and mergers and acquisitions.
Overview
Wilson Sonsini Goodrich & Rosati provides advice regarding anti-money laundering (AML) rules (a subset of which are sometimes referred to as “Know Your Customer” or “KYC” rules), AML internal investigations, and government inquiries and enforcement actions. We draw on our experience with technology companies, large and small financial institutions, and service in the U.S. government as regulators and prosecutors addressing money laundering and related matters.
Wilson Sonsini’s AML team regularly counsels clients regarding:
- the scope and applicability of AML rules including, for example, whether a technology company might be considered a “money transmitter” or “money services business”;
- requirements to register with the Financial Crimes Enforcement Network (FinCEN);
- how to develop and implement an AML program, including KYC provisions and any obligations to file reports, such as currency transaction reports and suspicious activity reports;
- relationships and synergies between AML obligations and economic sanctions compliance, particularly regarding Office of Foreign Assets Control (OFAC) regulations
- the meaning and relationship among myriad AML jargon terms, including the Bank Secrecy Act, the USA PATRIOT Act, the Financial Action Task Force (FATF), a Customer Identification Program (CIP), Politically Exposed Persons (PEPs), and similar terms;
- AML matters arising during transactional due diligence, including risk assessment and negotiating terms to mitigate risk;
- the interplay between AML regulations and criminal money laundering statutes (primarily 18 USC 1956 and 1957);
- conducting internal AML investigations
- responding to government AML inquiries and enforcement actions
We often combine our AML services with other Wilson Sonsini practices, including anti-corruption compliance; white collar defense; technology transactions; fund formation; investments; and mergers and acquisitions.
Alerts
FinCEN Finalizes Rule Requiring AML/CFT Programs for Registered Investment Advisers and Exempt Reporting Advisers
On September 4, 2024, the U.S Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a final rule that expands the definition of “financial institution” to include Registered Investment Advisers (RIAs) and Exempt Reporting Advisers (ERAs) and subjects these advisers to certain affirmative anti-money laundering (AML) requirements.1 FinCEN implemented this rule to address perceived risks regarding illicit finance and national security. Covered RIAs and ERAs must comply with the final rule, which requires implementing an AML program that includes certain specified elements, by January 1, 2026. While the final rule generally tracks the existing AML/CFT regime for other financial institutions, RIAs and ERAs had long been outside the ambit of AML/CFT regulations.
Alerts
The Critical Reporting Requirement U.S. Companies Can’t Afford to Ignore: Upcoming Deadlines for Beneficial Ownership Information Compliance
On January 1, 2024, the new Beneficial Ownership Information (BOI) reporting requirements under the U.S. Corporate Transparency Act (CTA) took effect.
Alerts
FinCEN Proposes Significant Expansion of AML/CFT Obligations to Cover Registered Investment Advisers, Venture Capital Advisers, and Private Fund Advisers
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a sweeping expansion of the Bank Secrecy Act’s (BSA) affirmative anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations.
Alerts
FinCEN Releases Proposed Rule Designating CVC Mixing as a “Primary Money Laundering Concern”
On October 23, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released a Notice of Proposed Rulemaking (proposed rule) addressing “mixing transactions” that involve convertible virtual currency (CVC). The proposed rule would require “covered financial institutions” to report certain information about CVC mixing transactions and maintain records of those transactions.
Alerts
Navigating the Current State of Financial Services for Marijuana Businesses and Preparing for Future Changes in Cannabis Banking
The legal landscape for marijuana-related businesses (MRBs) has seen significant change and challenges in recent years. Despite the legalization of marijuana for medical or recreational use in various states, it remains a controlled substance under the federal Controlled Substances Act (CSA). As a result, banks and certain payment companies have generally been hesitant or unwilling to provide financial services to MRBs due to risk management and regulatory compliance challenges, particularly with respect to anti-money laundering laws.
Alerts
Beware: Increasingly Aggressive Enforcement Actions in the Crypto Asset Industry Puts Companies on Notice
Regulators are increasingly taking enforcement action against crypto asset industry participants for violating anti-money laundering (AML) and sanctions laws. Regulators are concerned about the illicit use of crypto assets and are increasingly scrutinizing crypto asset companies. As we have previously discussed,1 companies in the crypto asset industry must be acutely aware of their AML and sanctions obligations or face the risk of an enforcement action by a federal or state regulator.
Insights
Alerts
FinCEN Finalizes Rule Requiring AML/CFT Programs for Registered Investment Advisers and Exempt Reporting Advisers
On September 4, 2024, the U.S Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a final rule that expands the definition of “financial institution” to include Registered Investment Advisers (RIAs) and Exempt Reporting Advisers (ERAs) and subjects these advisers to certain affirmative anti-money laundering (AML) requirements.1 FinCEN implemented this rule to address perceived risks regarding illicit finance and national security. Covered RIAs and ERAs must comply with the final rule, which requires implementing an AML program that includes certain specified elements, by January 1, 2026. While the final rule generally tracks the existing AML/CFT regime for other financial institutions, RIAs and ERAs had long been outside the ambit of AML/CFT regulations.
Alerts
The Critical Reporting Requirement U.S. Companies Can’t Afford to Ignore: Upcoming Deadlines for Beneficial Ownership Information Compliance
On January 1, 2024, the new Beneficial Ownership Information (BOI) reporting requirements under the U.S. Corporate Transparency Act (CTA) took effect.
Alerts
FinCEN Proposes Significant Expansion of AML/CFT Obligations to Cover Registered Investment Advisers, Venture Capital Advisers, and Private Fund Advisers
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a sweeping expansion of the Bank Secrecy Act’s (BSA) affirmative anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations.
Alerts
FinCEN Releases Proposed Rule Designating CVC Mixing as a “Primary Money Laundering Concern”
On October 23, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released a Notice of Proposed Rulemaking (proposed rule) addressing “mixing transactions” that involve convertible virtual currency (CVC). The proposed rule would require “covered financial institutions” to report certain information about CVC mixing transactions and maintain records of those transactions.
Alerts
Navigating the Current State of Financial Services for Marijuana Businesses and Preparing for Future Changes in Cannabis Banking
The legal landscape for marijuana-related businesses (MRBs) has seen significant change and challenges in recent years. Despite the legalization of marijuana for medical or recreational use in various states, it remains a controlled substance under the federal Controlled Substances Act (CSA). As a result, banks and certain payment companies have generally been hesitant or unwilling to provide financial services to MRBs due to risk management and regulatory compliance challenges, particularly with respect to anti-money laundering laws.
Alerts
Beware: Increasingly Aggressive Enforcement Actions in the Crypto Asset Industry Puts Companies on Notice
Regulators are increasingly taking enforcement action against crypto asset industry participants for violating anti-money laundering (AML) and sanctions laws. Regulators are concerned about the illicit use of crypto assets and are increasingly scrutinizing crypto asset companies. As we have previously discussed,1 companies in the crypto asset industry must be acutely aware of their AML and sanctions obligations or face the risk of an enforcement action by a federal or state regulator.
Affiliated Programs
Navigating the Growing Anti-Money Laundering Thicket for Technology Companies
Please join us for a webinar about significant anti-money laundering (AML) developments affecting technology companies. Panelists will include a representative from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), a primary anti-money laundering regulator, as well as an industry representative and Wilson Sonsini anti-money laundering lawyers.
Events
Affiliated Programs
Navigating the Growing Anti-Money Laundering Thicket for Technology Companies
Please join us for a webinar about significant anti-money laundering (AML) developments affecting technology companies. Panelists will include a representative from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), a primary anti-money laundering regulator, as well as an industry representative and Wilson Sonsini anti-money laundering lawyers.
Michael S. Casey
Partner
Mike Casey is a dual-qualified, Chambers-ranked partner in the London office of Wilson Sonsini Goodrich & Rosati. His practice focuses on investigations and regulatory compliance matters related to economic sanctions, export controls, money laundering, corruption, and white-collar fraud. In addition, he regularly acts as a specialist in mergers, acquisitions, venture financings, lending arrangements, and other types of corporate transactions. He also frequently advises clients on the UK’s National Security and Investment Act and other foreign direct investment review regimes.
Stephen R. Heifetz
Partner
Stephen advises clients on laws and policies at the intersection of international business and national security. He previously served in the U.S. government on the Committee on Foreign Investment in the U.S.
Josh Kaplan
Partner
Joshua (Josh) Kaplan is a corporate partner in the London and New York offices of Wilson Sonsini Goodrich & Rosati, where his practice focuses on U.S. expansion and serving companies at all stages of their life cycle, with an emphasis on clients in the financial technology and financial services sectors.
Grace Beck
Associate
Grace Beck is an associate in the Washington, D.C., office of Wilson Sonsini Goodrich & Rosati, where she focuses on national security and international trade regulatory matters. She advises domestic and foreign entities on matters before the Committee on Foreign Investment in the United States (CFIUS) and other foreign direct investment (FDI) reviews. Grace also counsels clients on compliance and enforcement pertaining to export controls and information and communications technology and services (ICTS) supply chain regulations administered by the Bureau of Industry and Security (BIS), economic sanctions administered by the Office of Foreign Assets Control (OFAC), and anti-money laundering laws administered by the Financial Crimes Enforcement Network (FinCEN) and other financial regulators.
While in law school, Grace served as the legal intern at the U.S. Department of Commerce for the Office of Information and Communications Technology and Services (OICTS) and the Office of Chief Counsel for BIS (OCC/IS), and for the Office of General Counsel at the Defense Intelligence Agency (DIA). Prior to law school, Grace worked as an administrator at a think tank specializing in international affairs and was a restaurateur.
While in law school, Grace served as the legal intern at the U.S. Department of Commerce for the Office of Information and Communications Technology and Services (OICTS) and the Office of Chief Counsel for BIS (OCC/IS), and for the Office of General Counsel at the Defense Intelligence Agency (DIA). Prior to law school, Grace worked as an administrator at a think tank specializing in international affairs and was a restaurateur.
Troy K. Jenkins
Associate
Troy Jenkins is an associate in the Washington, D.C., office of Wilson Sonsini Goodrich & Rosati. His practice focuses on advising financial institutions, financial services companies, and technology companies providing electronic payment services on the legal issues affecting their business. Troy’s particular areas of expertise include federal money services business laws; state money transmission laws; the Electronic Fund Transfers Act (EFTA) and Regulation E; federal anti-money laundering laws; and the Electronic Signatures in Global and National Commerce Act (E-Sign Act). He also counsels clients on compliance with sanctions regimes.
Navpreet K. Moonga
Associate
Navpreet Moonga is a dual-qualified associate in the London office of Wilson Sonsini Goodrich & Rosati, where her practice focuses on regulatory compliance matters. Navpreet advises on economic sanctions laws (including programs administered by the UK Office of Financial Sanctions Implementation (OFSI) and the U.S. Office of Foreign Assets Control (OFAC)), provisions of the UK Bribery Act and U.S. Foreign Corrupt Practices Act, export controls, and trade compliance with respect to international agreements and WTO provisions. She has experience interacting with U.S. government agencies and developing anti-bribery, sanctions, and export controls compliance programs.
People
Michael S. Casey
Partner
Mike Casey is a dual-qualified, Chambers-ranked partner in the London office of Wilson Sonsini Goodrich & Rosati. His practice focuses on investigations and regulatory compliance matters related to economic sanctions, export controls, money laundering, corruption, and white-collar fraud. In addition, he regularly acts as a specialist in mergers, acquisitions, venture financings, lending arrangements, and other types of corporate transactions. He also frequently advises clients on the UK’s National Security and Investment Act and other foreign direct investment review regimes.
Stephen R. Heifetz
Partner
Stephen advises clients on laws and policies at the intersection of international business and national security. He previously served in the U.S. government on the Committee on Foreign Investment in the U.S.
Josh Kaplan
Partner
Joshua (Josh) Kaplan is a corporate partner in the London and New York offices of Wilson Sonsini Goodrich & Rosati, where his practice focuses on U.S. expansion and serving companies at all stages of their life cycle, with an emphasis on clients in the financial technology and financial services sectors.
Grace Beck
Associate
Grace Beck is an associate in the Washington, D.C., office of Wilson Sonsini Goodrich & Rosati, where she focuses on national security and international trade regulatory matters. She advises domestic and foreign entities on matters before the Committee on Foreign Investment in the United States (CFIUS) and other foreign direct investment (FDI) reviews. Grace also counsels clients on compliance and enforcement pertaining to export controls and information and communications technology and services (ICTS) supply chain regulations administered by the Bureau of Industry and Security (BIS), economic sanctions administered by the Office of Foreign Assets Control (OFAC), and anti-money laundering laws administered by the Financial Crimes Enforcement Network (FinCEN) and other financial regulators.
While in law school, Grace served as the legal intern at the U.S. Department of Commerce for the Office of Information and Communications Technology and Services (OICTS) and the Office of Chief Counsel for BIS (OCC/IS), and for the Office of General Counsel at the Defense Intelligence Agency (DIA). Prior to law school, Grace worked as an administrator at a think tank specializing in international affairs and was a restaurateur.
While in law school, Grace served as the legal intern at the U.S. Department of Commerce for the Office of Information and Communications Technology and Services (OICTS) and the Office of Chief Counsel for BIS (OCC/IS), and for the Office of General Counsel at the Defense Intelligence Agency (DIA). Prior to law school, Grace worked as an administrator at a think tank specializing in international affairs and was a restaurateur.
Troy K. Jenkins
Associate
Troy Jenkins is an associate in the Washington, D.C., office of Wilson Sonsini Goodrich & Rosati. His practice focuses on advising financial institutions, financial services companies, and technology companies providing electronic payment services on the legal issues affecting their business. Troy’s particular areas of expertise include federal money services business laws; state money transmission laws; the Electronic Fund Transfers Act (EFTA) and Regulation E; federal anti-money laundering laws; and the Electronic Signatures in Global and National Commerce Act (E-Sign Act). He also counsels clients on compliance with sanctions regimes.
Navpreet K. Moonga
Associate
Navpreet Moonga is a dual-qualified associate in the London office of Wilson Sonsini Goodrich & Rosati, where her practice focuses on regulatory compliance matters. Navpreet advises on economic sanctions laws (including programs administered by the UK Office of Financial Sanctions Implementation (OFSI) and the U.S. Office of Foreign Assets Control (OFAC)), provisions of the UK Bribery Act and U.S. Foreign Corrupt Practices Act, export controls, and trade compliance with respect to international agreements and WTO provisions. She has experience interacting with U.S. government agencies and developing anti-bribery, sanctions, and export controls compliance programs.
Recent Insights
Alerts
FinCEN Finalizes Rule Requiring AML/CFT Programs for Registered Investment Advisers and Exempt Reporting Advisers
On September 4, 2024, the U.S Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a final rule that expands the definition of “financial institution” to include Registered Investment Advisers (RIAs) and Exempt Reporting Advisers (ERAs) and subjects these advisers to certain affirmative anti-money laundering (AML) requirements.1 FinCEN implemented this rule to address perceived risks regarding illicit finance and national security. Covered RIAs and ERAs must comply with the final rule, which requires implementing an AML program that includes certain specified elements, by January 1, 2026. While the final rule generally tracks the existing AML/CFT regime for other financial institutions, RIAs and ERAs had long been outside the ambit of AML/CFT regulations.
Learn More
Alerts
The Critical Reporting Requirement U.S. Companies Can’t Afford to Ignore: Upcoming Deadlines for Beneficial Ownership Information Compliance
On January 1, 2024, the new Beneficial Ownership Information (BOI) reporting requirements under the U.S. Corporate Transparency Act (CTA) took effect.
Learn More
Recent Events
Affiliated Programs
Navigating the Growing Anti-Money Laundering Thicket for Technology Companies
Please join us for a webinar about significant anti-money laundering (AML) developments affecting technology companies. Panelists will include a representative from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), a primary anti-money laundering regulator, as well as an industry representative and Wilson Sonsini anti-money laundering lawyers.
Learn More
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