FIs warned of risks linked to corruption in Nicaragua that could spur movement of funds to U.S. accounts

Snapshot of FinCEN’s Oct. 4 advisory.

Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an advisory Thursday to alert U.S. financial institutions of the increasing risk that proceeds of political corruption from Nicaragua may enter or traverse the U.S. financial system. FinCEN says it expects that senior foreign political figures connected to the regime of Nicaraguan President Daniel Ortega could react to the perceived threat of further unrest, potential sanctions, or other factors by moving assets out of their accounts in Nicaragua or elsewhere.

“These assets could be the proceeds of corruption, and they may be directed into U.S. accounts, or laundered through the U.S. financial system,” the agency warns. “FinCEN requests that financial institutions file Suspicious Activity Reports (SARs), consistent with their existing Bank Secrecy Act (BSA) obligations, when they identify potential misuse of Nicaraguan public funds or potential proceeds of political corruption associated with senior foreign political figures connected to the Ortega regime.”

FinCEN Advisory (FIN-2018-A005)

Advisory, Spanish version

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