🔒Proposed FinCEN Regulations on Huione Group's Money Laundering Risks
Special Measure Regarding Huione Group, as a Foreign Financial Institution of Primary Money Laundering Concern
Summary
FinCEN is issuing a notice of proposed rulemaking (NPRM), pursuant to section 311 of the USA PATRIOT Act, that proposes prohibiting the opening or maintaining of a correspondent account in the United States for, or on behalf of, Huione Group, a foreign financial institution based in Cambodia found to be of primary money laundering concern. The NPRM also would require covered financial institutions to apply special due diligence to their foreign correspondent accounts that is reasonably designed to guard against their use to process transactions involving Huione Group.
Agencies
- Treasury Department
- Financial Crimes Enforcement Network
Business Impact
$$$ - High
The text outlines proposed regulations that would prohibit U.S. financial institutions from maintaining correspondent accounts with Huione Group due to its association with money laundering and terrorist financing. This impacts compliance obligations and poses significant risks for businesses involved in international finance.