Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 31

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 31
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 efforts among the agencies tasked with administering anti-money laundering and countering the financing of terrorism requirements,
    including the Financial Crimes Enforcement Network, or “FinCEN,” the primary federal banking regulators, federal law
    enforcement agencies, national security agencies, the intelligence community, and financial institutions;

    ·
    providing additional penalties with respect to
    violations of BSA and enhancing the powers of FinCEN;

    ·
    significant updates to the beneficial ownership
    collection rules and the creation of a registry of beneficial ownership which will track the beneficial owners of reporting companies
    which may be shared with law enforcement and financial institutions conducting due diligence under certain circumstances;

    ·
    improvements to existing information sharing provisions
    that permit financial institutions to share information relating to SARs with foreign branches, subsidiaries, and affiliates (except
    those located in China, Russia, or certain other jurisdictions) for the purpose of combating illicit finance risks; and

    ·
    enhanced whistleblower protection provisions,
    allowing whistleblower(s) who provide original information which leads to successful enforcement of anti-money laundering laws in
    certain judicial or administrative actions resulting in certain monetary sanctions to receive up to 30% of the amount that is collected
    in monetary sanctions as well as increased protections.

FinCEN published a final
rule implementing the beneficial ownership registry that was effective on January 1, 2024, however, these beneficial ownership rules
are subject to a nationwide preliminary injunction against enforcement by FinCEN of the Corporate Transparency Act and its implementing
regulations related to the beneficial ownership registry. Bank management is monitoring developments concerning these rules.

Under the USA PATRIOT
Act, FinCEN can send our banking regulatory agencies lists of the names of persons suspected of involvement in terrorist activities.
The Bank can be requested, to search its records for any relationships or transactions with persons on those lists. If the Bank finds
any relationships or transactions, it must file a suspicious activity report and contact FinCEN.

The
Office of Foreign Assets Control 

The Office of Foreign
Assets Control (“OFAC”), which is an office in the U.S. Department of the Treasury, is responsible for helping to ensure
that U.S. entities do not engage in transactions with “enemies” of the United States, as defined by various Executive Orders
and Acts of Congress. OFAC publishes lists of names of persons and organizations suspected of aiding, harboring or engaging in terrorist
acts; owned or controlled by, or acting on behalf of target countries,