Regulatory priorities for the Treasury Department in combating illicit finance include closing the legal and regulatory loopholes that bad actors exploit and increasing transparency in the real estate sector, Under Secretary for Terrorism and Financial Intelligence Brian Nelson said today. In a pre-recorded speech delivered at the Financial Crimes Enforcement Conference in National Harbor, Maryland, Nelson highlighted agency efforts to identify and shut down financing operations for the terrorist organization Hamas and prevent Russia’s evasion of sanctions in its war against Ukraine. He also spoke about domestic priorities for the Treasury Department, previewing likely rulemaking to come out in the coming months.
“These include three areas of focus,” he said. “First, enhancing corporate transparency. Second, cracking down on money laundering through the real estate sector. And third, combatting the misuse of sectors that lack comprehensive AML/CFT [anti-money laundering/countering the financing of terrorism] obligations, including the investment industry, and improving effectiveness among these already subject to obligations.”
Nelson noted that in terms of corporate transparency, FinCEN will start accepting beneficial ownership information, or BOI, in January 2024. The agency is also finalizing a final rule to establish who may request BOI, how recipients can use that information and how they can secure it, he said. The Treasury Department is also crafting proposed rules to enhance transparency in the real estate sector and to establish AML/CFT requirements for investment advisers.
“I know recent events and the scale of challenges ahead of us have instilled a renewed sense of urgency, and all of us are grateful for your continuing work to fight financial crime,” he told conference attendees. “We appreciate hearing your perspective on these issues. I encourage you to share the insights, the trends and the challenges that you’re observing with my team and other leaders from across the U.S. Treasury.”
