US Treasury and FinCEN Clarify BSA/AML Supervision

As a result of a working group established by the U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence, the federal bank regulatory agencies and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) today issued a joint statement as part of continuing efforts to improve transparency into their risk-focused approach to Bank Secrecy Act (BSA)/anti-money laundering (AML) supervision. The risk-focused approach enables federal agencies to better tailor examination plans and procedures based on the unique risk profile of each bank.

The statement outlines common practices for assessing a bank’s money laundering/terrorist financing risk profile, assisting examiners in scoping and planning the examination and initially evaluating the adequacy of the BSA/AML compliance program. Using this approach, the agencies generally are able to allocate more resources to higher-risk areas and fewer resources to lower-risk areas when conducting BSA/AML examinations. The statement does not establish new requirements, and also notes that having a risk-based compliance program enables a bank to allocate compliance resources commensurate with its risk.

This statement was developed by a working group aimed at improving the effectiveness and efficiency of the BSA/AML regime. Members include the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and FinCEN.

Today’s joint statement is the third statement resulting from the working group.

Related articles

  1. FIX Tests IPO Automation

    UK-based Caspian is an industry leader in automated AML investigation technology.

  2. Stefan Hendrickx, Ancoa

    Partnership integrates machine learning with trusted risk data to combat financial crime.

  3. Bats-Direct Edge Complete Merger

    Partnership enables customers to streamline KYC and AML compliance in fight against financial crime.

  4. Market Surveillance

    Regulators want finserv firms to monitor transactions using a software solution, ACA Telavance says.

  5. Stefan Hendrickx, Ancoa
    Contributed Content

    Technology and AML

    Financial services firms look to tech innovation to help ferret out money laundering.