Treasury unit asks how to streamline, modernize, update BSA requirements

Input on how to modernize and streamline the United States’ anti-money laundering and countering the financing of terrorism (AML/CFT) regime, carried out under the Bank Secrecy Act (BSA), is sought in a request for information released Tuesday by Treasury’s financial crimes enforcement unit.

The Financial Crimes Enforcement Network (FinCEN) has a notice slated for publication in the Federal Register Wednesday that that solicits input on ways to “modernize risk-based AML/CFT regulations and guidance, issued pursuant to the Bank Secrecy Act (BSA), so that they, on a continuing basis, protect U.S. national security in a cost-effective and efficient manner.”

This RFI, FinCEN said, also supports the agency’s ongoing, formal review of BSA regulations and guidance required under last year’s Anti-Money Laundering Act (AML Act). The act requires the Treasury secretary, in consultation with federal financial institution regulators and others, to report to Congress by Jan. 1, 2022, on findings and determinations.

The RFI seeks input on 26 questions addressing:

  • safeguards to protect the financial system from threats;
  • reports and records that are highly useful in countering financial crime.
  • which BSA regulations and guidance may be outdated, redundant, or do not promote a risk-based regime;
  • which BSA regulations and guidance do not conform with international standards to combat financial crime; and
  • what changes to BSA regulations and guidance would improve efficiency.

FinCEN said comments should be submitted by Feb. 14.

FinCEN Seeks Comments on Modernization of U.S. AML/CFT Regulatory Regime

Request for information (Federal Register notice)