Federal banking regulators issue statement on Bank Secrecy Act/Anti-Money Laundering compliance

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The federal agencies that regulate the banking industry issued a statement related to compliance by banks with the Bank Secrecy Act/Anti-Money Laundering Act.

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The statement, issued in consultation with the Financial Crimes Enforcement Network and the National Credit Union Administration, addresses how risk management principles described in the “Supervisory Guidance on Model Risk Management” relate to systems used by banks to assist in complying with the requirements of Bank Secrecy Act (BSA) laws and regulations.

The agencies said that the guidance does not alter existing BSA/anti-money laundering (AML) legal or regulatory requirements or establish new supervisory expectations. They add that no specific model risk management framework is required.

The agencies, along with the National Credit Union Administration and the Financial Crimes Enforcement Network, also announced a request for information (RFI) on the subject. Specifically, they are seeking information on the extent to which the principles discussed in the guidance support compliance by banks and credit unions with BSA/AML and Office of Foreign Assets Control requirements. The agencies are looking to better understand bank practices and determine whether additional explanation or clarification may be helpful. Comments to the RFI will be accepted for 60 days after publication in the Federal Register.

The five federal banking agencies include the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, National Credit Union Administration, and the Office of the Comptroller of the Currency.

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