FinCEN and the IRS Criminal Investigation unit have jointly issued a notice to US banks regarding tax evasion and workers’ compensation insurance fraud in the residential and commercial real estate construction sectors. These illicit schemes, costing hundreds of millions of dollars, often involve actors using banks and check cashers to perpetrate fraud.
The notice highlights how these schemes employ networks of individuals, shell companies, and forged documents. Such activities undermine both local and national construction job markets, disadvantaging legitimate contractors and their employees.
This initiative aligns with FinCEN’s ongoing campaign against illicit use of shell companies and complements the Anti-Money Laundering/Countering the Financing of Terrorism National Priorities. It equips financial institutions with indicators of these schemes and specific guidelines for Suspicious Activity Report (SAR) filings.
Last year, FinCEN took a significant step by mandating beneficial ownership information reporting, aimed at curbing illicit finance. This move enhances transparency and security, aiding efforts against criminal actors exploiting anonymous shell companies for money laundering and fraud.
By FCCT Editorial Team
, an independent military force, and allied militias in Sudan raped several dozen women and girls in West Darfur’s capital, El Geneina, and those fleeing to Chad between late April and late June 2023, Human Rights Watch said today. The assailants appear to have targeted people because of their Massalit ethnicity and, in some cases, because they were known activists.){kind=link}