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FinCEN Advisory FIN-2017-A004

September 11, 2017 / Source: FinCEN

Advisory Information
South Sudan Advisory_09-06-2017.pdf417.97 KB
Issued Date
September 06, 2017
Subject: Advisory to Financial Institutions on Political Corruption Risks in South Sudan

Certain South Sudanese senior political figures may seek to abuse the financial system.

The Financial Crimes Enforcement Network (FinCEN) is issuing this Advisory to alert U.S. financial institutions about the possibility that certain South Sudanese senior political figures may try to use the U.S. financial system to move or hide proceeds of public corruption.  This advisory reminds financial institutions of their due diligence and suspicious activity report (SAR) filing obligations related to such senior foreign political figures.[1]  It also highlights persons who have been subject to sanctions because of their actions threatening the peace, security, or stability of South Sudan.  High-level political corruption can damage a nation’s economic growth and stability as it can interfere with the international community's efforts to support and promote economic development, discourage foreign private investment, and foster a climate where financial crime and other forms of lawlessness can thrive.

This advisory should be shared with:

Chief Executive Officers
Chief Operations Officers
Chief Risk Officers
Chief Compliance Officers
Legal departments

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[1] “The term ‘senior foreign political figure’ means a current or former senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not); a senior official of a major foreign political party; or a senior executive of a foreign government-owned commercial enterprise; a corporation, business, or other entity that has been formed by, or for the benefit of, any such individual; an immediate family members of any such individual; and a person who is widely and publicly known (or is actually known by the relevant covered financial institution) to be a close associate of such individual.  For the purposes of this definition, ‘senior official or executive’ means an individual with substantial authority over policy, operations, or the use of government-owned resources and ‘immediate family member’ means spouses, parents, siblings, children and a spouse’s parents and siblings.”  31 CFR § 1010.605(p).  See also generally 31 CFR § 1010.620 and 31 CFR § 1020.320, 1021.320, 1022.320, 1023.320, 1024.320, 1025.320, 1026.320, 1029.320, and 1030.320.