US Department of Justice Takes Steps to Combat Money Laundering in Latin America

DOJ Establishes Task Force to Tackle Corruption in El Salvador, Guatemala, and Honduras

The US Department of Justice (DOJ) has created a new task force specifically focused on combating corruption in El Salvador, Guatemala, and Honduras. This Anti-Corruption Task Force (ACTF) brings together representatives from various DOJ components, including the FCPA Unit, Kleptocracy Asset Recovery Initiative, Narcotic and Dangerous Drug Section, and others.

Key Developments:

Creation of an Anti-Corruption Tip Line

• The DOJ has established a tip line for reporting corruption in El Salvador, Guatemala, and Honduras.
• Individuals with information about corrupt actors can report their conduct anonymously through this secure channel.

Increased Transparency around Beneficial Ownership Information (BOI)

FinCEN’s New Rules:

• FinCEN has promulgated final rules requiring certain corporations, limited liability companies, and other entities created or registered to do business in the United States to report information about their beneficial owners.
• This includes identifying information about individuals who directly or indirectly own or control the company.

Extension of BSA Obligations to Investment Advisers

FinCEN’s Proposed Rule:

• FinCEN has proposed a new rule that would add two types of investment advisers to the definition of “financial institution” subject to the Bank Secrecy Act (BSA).
• This would require these investment advisers to have anti-money laundering programs and report suspicious activity to law enforcement.

Businesses and Financial Institutions Must Stay Compliant

These developments demonstrate the DOJ’s commitment to combating money laundering and other financial crimes in Latin America. Businesses and financial institutions with ties to the region should be aware of these efforts and take steps to ensure their compliance programs are robust enough to detect and mitigate a wide range of illicit financing schemes.