Shearman & Sterling provides a wide range of anti-money laundering (AML) and counter-terrorist financing (CTF) services to global banks, securities broker-dealers, mutual funds, investment advisors, private equity funds, insurance companies, FinTech companies, and corporations throughout the world. We represent clients in compliance program design and implementation; law enforcement and regulatory investigations and internal investigations; and related civil and criminal litigation. Our roster includes lawyers who have had wide-ranging government experience, and leadership roles at leading financial institutions. Our team has the breadth and depth of experience to provide clients with the technical, strategic and practical assistance that they require, wherever and whenever issues arise.

Shearman & Sterling works closely with clients to address the many significant AML and CTF issues that can arise, including those not anticipated or clearly addressed in existing laws, regulations and practice. We understand the importance of delivering timely and practical advice, and work with clients to find effective solutions to guard against the legal and reputational risks they face.

Criminal and Regulatory Enforcement and Investigations

We represent clients at all stages of high-stakes law enforcement and regulatory actions, including matters before the Department of Justice (DOJ), the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the New York State Department of Financial Services (DFS), the US Securities and Exchange Commission (SEC), the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN). We also have extensive experience counseling clients during their dealings with a range of law enforcement agencies and regulators in Europe (and Asia), including the Serious Fraud Office (SFO), Her Majesty's Revenue and Customs (HMRC), Financial Conduct Authority (FCA) and National Crime Agency (NCA) in the U.K. We have significant experience in:

• Conducting internal investigations across multiple jurisdictions
• Responding to regulatory and law enforcement inquiries, examinations, and subpoenas
• Navigating matters involving multi-agency actions involving federal and state agencies within the US, as well as multi-jurisdictional investigations
• Providing insight into enforcement trends in connection with settlement negotiations, including complex cross-border resolutions
• Advising on the implementation of remedial measures
• Advising on collateral consequences of regulatory and law enforcement actions
• Advising on emerging regulatory and enforcement trends in anticipation of future regulatory and law enforcement inquiries

Regulatory and Compliance

We understand that legal and regulatory compliance will be at the forefront of any client's mind and that ensuring AML and CTF programs are effective is critical. They must be tailored to protect against the unique risks faced by each client, and strong enough to withstand not only internal and external reviews, but the scrutiny of federal and state regulators who often have overlapping jurisdiction and routinely audit for compliance with applicable laws and regulations. We have experience in:

• Advising on and developing global AML and KYC policies and procedures
• Advising on regulatory examinations and related AML issues
• Advising on due diligence and negotiations in relation to AML/anti-bribery elements of transactions
• Advising on whether or not to make, and on the drafting of, suspicious activity reports and related filings
• Establishing procedures and safeguards for the security and confidentiality of information
• Developing compliance manuals covering data protection registration and compliance issues
• Advising on AML-related FATCA/data protection issues

For information on our related Sanctions and Global Compliance and Anticorruption capabilities, please see links below:

We provide examples of our representative matters below. Please note that certain matters cannot be disclosed because of confidentiality issues.

Investigations and Contentious Matters

• Citibank: Represented Citibank in connection with various proceedings arising out of its relationship with Raul Salinas, the brother of the then president of Mexico. These proceedings involved congressional hearings and led to significant provisions in the U.S.A. Patriot Act.
• Bank of Nova Scotia: Represented Bank of Nova Scotia in a series of enforcement matters as to Grand Jury subpoenas for bank records in the Cayman Islands and the Bahamas.
• Danske Bank A/S: Represented Danske Bank A/S in investigations by DOJ, the SEC, and Danish criminal authorities arising from its former Estonian branch, resulting in a USD 2 billion global settlement. This high-profile case, following allegations of money laundering, was resolved without money laundering charges.
• Republic National Bank: Represented Republic National Bank in connection with various investigations and forfeiture actions relating to its private banking and currency business in Russia, Luxembourg, Switzerland, and certain Latin American countries.
• Major Global Financial Institution: Represented a major global financial institution in connection with an SEC investigation into one of its business lines’ compliance with BSA and AML rules and regulations.
• Major Global Financial Institution: Represented a major global financial institution’s broker dealer entity in a two-year long SEC investigation into AML controls.
• Major European Bank: Represented a major European bank with regard to investigations by multiple U.S. and state enforcement authorities concerning financial flows related to sanctioned entities and countries at group and subsidiary levels and negotiated resolutions and negotiated resolutions on behalf of the group and selected subsidiaries.
• Swiss Banks: Represented several Swiss Banks in connection with U.S. efforts to curtail the use of undisclosed Swiss bank accounts by Americans.

Advisory

• Various Foreign Banks: Advice regarding compliance with BSA/AML requirements, vendor due diligence, and risk assessments in connection with applications and examinations by banking regulators.
• Foreign Bank: Advised a foreign bank with U.S. operations in connection with examination and enforcement issues by the U.S. banking regulators, as well as independent consultant requirements.
• Payments Companies: Advice regarding AML requirements applicable to money transmitters and cryptocurrency companies.
• E-Commerce Companies: Advised e-commerce ventures with respect to AML policies and procedures.
• State-Owned Oil Company: Advised a state-owned oil company in South America on compliance with Financial Action Task Force (FATF) and Caribbean Financial Action Task Force (CFATF) guidelines.
• Russian Bank: Provided advice to a Russian bank in connection with obtaining a license from OFAC related to payments under performance guarantees.
• Various Clearing Houses: Advised various clearing houses with respect to AML policies and procedures.
• Private Equity Investor: Advised a private equity investor on the development of the company’s AML and related policies.

Other Related Criminal and Investigations Experience

• Bernard Madoff Ponzi Scheme – Multiple Major Financial Institutions: Represented multiple major financial institutions in avoidance actions and other litigation associated with the fallout from the Bernard Madoff Ponzi scheme.
• Petróleos de Venezuela, S.A.: Represented Petróleos de Venezuela, S.A. in matters arising from the Michael Kenwood Ponzi scheme fraud.
• Swiss Company: Representing a Swiss company in a cybersecurity engagement in New York, Hong Kong, and Shanghai to recover proceeds of a fraud perpetrated on the company by unknown individuals through an email hacking scheme.
• Non-U.S. Company: Represented a non-U.S. company in a criminal investigation of data stripping on U.S. transactions with Iran.
• Major Asian Financial Institution: Represented a major Asian financial institution in a stripping investigation by federal, OFAC, and state banking authorities.
• Major European Financial Institution: Represented a major European financial institution in coordinating governmental investigations concerning allegations of stripping and other non-transparent practices at certain subsidiaries and compliance assurance initiatives.