The Financial Crimes Enforcement Network (“FinCEN”) has issued a notice calling financial institutions’ attention to payroll tax evasion and workers’ compensation fraud in the construction sector.
The notice provides information on:
- Payroll tax evasion and workers’ compensation fraud schemes;
- Red-flag indicators of construction-related payroll tax evasion and workers’ compensation fraud; and
- Reminder of relevant obligations under the Bank Secrecy Act (“BSA”) and tools for U.S financial institutions.
Firms with operations in the U.S. or exposure to the sectors mentioned should view the FinCEN notice to ensure that they are aware of current fraud threats and trends alongside their obligations.