Interview with Victor Song, Former Chief of IRS Criminal Investigation (CI)

IRS Buidling

I had the opportunity to speak with the former Chief of Internal Revenue Service Criminal Investigation (CI), Victor Song, about the future of international tax enforcement.  International enforcement has been a top priority for the IRS for many years, and Mr. Song has had a critical role in that effort.  Mr. Song’s tenure with the IRS spanned 30 years. He joined in 1981 and became a special agent in 1983. He rose to the position of deputy chief of CI in 2007, was appointed CI chief in January 2010, and retired from CI in December 2011. Mr. Song then served as the Executive Vice President of Compliance and Advisor to the CEO for Samsung Electronics America; he currently runs Victor Song Consulting, concentrating on services for tax controversy, anti-money laundering, corporate compliance and internal investigations.… Read More

Federal Reserve’s AML/BSA Compliance Crackdown Continues

AML BSA ComplianceThis week the Federal Reserve Bank of San Francisco announced that East West Bank, based in Pasadena, California and with subsidiaries in China and Hong Kong, has entered into an agreement to strengthen its anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance. The agreement covers many of the same areas as the New York Fed’s recent agreement with The Bank of Nova Scotia, which we discussed in a November 12 post, and calls for revamped compliance programs for key areas, including BSA/AML, Customer Due Diligence, and Suspicious Activity Monitoring and Reporting.

Of interest are two obligations the agreement imposes in connection with the Bank’s required Suspicious Activity Monitoring and Reporting.… Read More

NY DFS Cracks Down on Banks’ Anti-Money Laundering Deficiencies

Earlier this year, New York’s Department of Financial Services (“DFS”), the State’s banking and insurance regulator, announced that it was increasing and strengthening its enforcement efforts aimed at financial institutions’ anti-money laundering (“AML”) and Bank Secrecy Act (“BSA”) compliance deficiencies. The latest installment in the DFS’s crackdown on financial institutions came on November 5th, when the DFS and the Federal Reserve Bank of New York (the “New York Fed”) entered into an agreement with The Bank of Nova Scotia and its New York agency (collectively, the “Bank”), obligating the Bank to submit revised compliance programs for several key areas, including BSA/AML, Customer Due Diligence, and Suspicious Activity Monitoring and Reporting.… Read More

Digital Currency: A Global System, Yet Subject to U.S. Law and Regulation

Digital CurrencyThe use of digital currency and its underlying technology may be gaining traction in the traditional economy, but the industry remains a focus of law enforcement interest. The IRS, recognizing the opportunity for digital currency to be used as a possible vehicle for tax evasion,  declared in March 2014 that digital currency is to be taxed as “property,” rather than as “currency.” Given the close relationship between the IRS and enforcement of the Bank Secrecy Act (BSA), the legal fields of tax controversy and tax compliance are necessarily affected by the evolving enforcement regime regarding the use – or misuse – of digital currency.… Read More