As of August 2012, residential mortgage lenders and originators are now required to have anti-money laundering (“AML”) programs.
These AML programs must assist the mortgage lenders and originators in detecting suspicious activity and should require the filing of Suspicious Activity Reports.
If you are a non-bank residential mortgage lender or originator, you need to have an AML program in place to comply with the regulations put out by the Financial Crimes Enforcement Network (“FinCEN”).
Your AML program must, at a minimum:
| • | incorporate policies, procedures and internal controls to prevent money laundering and terrorist financing; |
| • | designate a compliance officer; |
| • | provide for ongoing training of appropriate staff; and |
| • | require independent testing to monitor the program. |
Your AML program and manual must be made available to FinCEN upon request. You should be aware that any failure to comply with FinCEN’s AML program requirement may result in civil and/or criminal penalties. For more details on the rule, see the February 14, 2012 Federal Register rule online.
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If you need assistance developing or reviewing your AML program and manual, please contact Gunster’s banking and financial services attorneys.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication. Established in 1925, Gunster is one of Florida’s oldest and largest full-service law firms. The firm’s clients include international, national and local businesses, institutions, local governments and prominent individuals. Gunster maintains its presence in Florida with offices in Fort Lauderdale, Jacksonville, Miami, Palm Beach, Stuart, Tallahassee, Tampa, The Florida Keys, Vero Beach and its headquarters in West Palm Beach. Gunster is home to more than 165 attorneys and 200 committed support staff, providing counsel to clients through 18 practice groups including banking & financial services; business litigation; construction; corporate; environmental & land use; government affairs; health care; immigration; international; labor & employment; leisure & resorts; private wealth services; probate, trust & guardianship litigation; professional malpractice; real estate; securities and corporate governance; tax; and technology & entrepreneurial companies. Gunster is ranked among the National Law Journal’s list of the 250 largest law firms. |
