The focus of anti-money laundering resources at banks would be on risk, particularly higher-risk customers and activities, under a proposal issued Tuesday by the Federal Reserve.
In its proposal, the agency said banks would also be required to incorporate the Financial Crimes Enforcement Network’s (FinCEN) anti-money laundering priorities into their risk assessment processes. The Fed said it is proposing that once a bank has established an anti-money laundering program, the Fed would focus supervision and enforcement activities on significant failures to implement the program.
In April, FinCEN, the Federal Deposit Insurance Corp. (FDIC), National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) proposed rules that the agencies would have to “consult” with FinCEN on certain anti-money laundering/countering the financing of terrorism (AML/CFT) actions.
That proposal stated that, among other things, regulators “would ensure that institutions establish and maintain effective AML/CFT programs that are intended to better achieve the purposes of the Bank Secrecy Act (BSA), culminating in the development of highly useful information related to illicit financial transactions for law enforcement and national security agencies.”
The April proposal contended that, through the rulemaking, regulators also “intend to modernize and reform Federal supervision of AML/CFT programs by enhancing FinCEN’s role in AML/CFT supervision and enforcement.”
Comments on the proposal are due 60 days after publication in the Federal Register, the Fed said.
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