OFAC Revised Guidance on Entities Owned by Blocked Persons

The Department of Treasury’s Office of Foreign Assets Control (OFAC) has released revised guidance regarding entities owned by individuals or other entities designated under Executive orders.  The new guidance focuses on entities owned 50 percent or more in the aggregate by more than one blocked person.

Property blocked pursuant to an Executive order or regulations administered by OFAC is broadly defined to include any property or interest in property, tangible or intangible, including present, future or contingent interests. A property interest subject to blocking includes interests of and nature whatsoever, direct or indirect.

Persons whose property or interests in the property is blocked per an Executive order are considered to have all interests in the property blocked.  Consequently, any entity owned in aggregate 50 percent of more by one or more blocked persons is itself considered a blocked person.

Compliance Question of the Week

Does an individual with a Power of Attorney have the authority to close a membership account?

Yes, absent any language in the POA limiting the authority of the attorney-in-fact, the ATF can close an account and withdraw the final shares just as the principal, primary member could.

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA announced that it is helping 179 federally insured credit unions with free consulting services which will help credit unions think strategically and position themselves for future success.

Consumer Financial Protection Bureau (CFPB)

The CFPB issued final rules to update the annual thresholds for Regulation Z.

The CFPB issued a press release to consumers alerting them to the potential risks of virtual currency, such as Bitcon.

Financial Crimes Enforcement Network (FinCEN)

FinCEN director Calvery delivered a speech at the 2014 Mid-Atlantic AML Conference. Calvery’s speech addressed money laundering issues, BSA reporting, and touched on some of the marijuana guidance issued.

FinCEN issued an advisory to U.S. Financial Institutions on Promoting a Culture of Compliance in regards to BSA and AML compliance.

Office of Foreign Assets Control (OFAC)

OFAC released revised guidance on Entities Owned by Persons Whose Property and Interests in Property are Blocked.

The Department of Housing and Urban Development (HUD)

HUD released the July 2014 Housing Scorecard.

Financial Industry Regulatory Authority (FINRA)

FINRA issued an alert to investors regarding potential viral disease scams that are targeting investors.

Federal Reserve Board (FRB)

The August edition of the FRB’s FedFlash is now available.

The FRB issued a white paper on the Fair Lending Analysis of Credit Cards.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of August 18, 2014. The last update prior to this was August 7, 2014.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance, NCUA.