ABSTRACT

Another Foreign Bank Claims FinCEN's 'Death Sentence' Requires Better Procedures [October 26, 2015]   [open pdf - 112KB]

"On October 6, 2015, shareholders of Banca Privada d'Andorra (BPA) filed suit against the Treasury Secretary and the Financial Crimes Enforcement Network (FinCEN), claiming that FinCEN acted unlawfully in proposing to bar the Andorran bank from the U.S. financial system. According to the complaint filed in the U. S. District Court for the District of Columbia, FinCEN acted arbitrarily and capriciously in violation of the procedures required under the Administrative Procedure Act and under the Fifth Amendment to the U.S.Constitution. The case, 'Cierco v. Lew, et al.', Civ. No. 15-cv-1641 (D.D.C.), began on March 13, 2015, when FinCEN, using authority under Section 311 of the USA PATRIOT Act (Section 311), published a finding that BPA is a 'Financial Institution of Primary Money Laundering Concern.' Among the specific bases for its finding, FinCEN cited three instances in which high level BPA managers took bribes or otherwise corruptly provided banking services in aid of criminals, organized crime, public corruption, human trafficking, or fraud. According to the FinCEN finding, BPA bank officials facilitated loans from a Spanish bank to Russians associated with international criminal organizations; BPA officials helped to set up shell organizations to hide criminal sources of funds funneled through BPA accounts; and BPA personnel aided criminals to move $4.2 billion in proceeds of public corruption offenses committed in violation of Venezuelan laws."

Report Number:
CRS Legal Sidebar, October 26, 2015
Publisher:
Date:
2015-10-26
Copyright:
Public Domain
Retrieved From:
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html
Format:
pdf
Media Type:
application/pdf
URL:
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