the Federal Reserve Board It plans to amend its requirements for banks to maintain anti-money laundering (AML) programs, among other things, to require them to focus AML resources on a risk-based basis.
In addition to requiring banks to pay more attention to high-risk customers and activities, the Federal Reserve plans to require banks to integrate these services. Financial Crimes Enforcement NetworkThe Fed said on Tuesday (July 7) that anti-money laundering (FinCEN) priorities in their risk assessments. press release.
The Fed also plans to focus its supervisory and enforcement activities on significant failures of banks to implement their anti-money laundering program once it is established.
These changes are included in A Notice of Proposed Rulemaking The Federal Reserve on Tuesday issued a revision to requirements for banks to maintain anti-money laundering programs. The Fed invites comment on the proposal for 60 days after its publication in the Federal Register, according to the statement.
These changes are intended to be consistent with those proposed separately by FinCEN and three other agencies in April, the Fed said in its proposal. These include agencies Office of the Comptroller of the Currency (OK), and Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (Nkwa).
The Federal Reserve Board approved the proposed regulations on Monday (July 6) with a decision by A vote From 6 to 1.
governor Michael S. bar They voted against the motion, saying in a statement And he could not vote for “the introduction of a new, unspecified standard for issuing matters requiring attention and implementation procedures.”
“I am concerned that the ‘substantial or systematic’ standard may have unknown impacts on the Board’s ability to demonstrate that a supervised institution establishes and maintains AML/CFT programs consistent with the rule. I believe it is critical that the Fed maintain a robust AML/CFT supervisory program.”
In April, FinCEN announced a proposed rule that it said would “radically reform” financial institutions. Combating money laundering and terrorist financing programs by reducing the compliance burden and enhancing risk-based programmes.
The FDIC, NCUA, and OCC on the same day announced the issuance of a proposed rule to align their AML/CFT rules with those proposed by the Financial Crimes Enforcement Network (FINCEN).
Treasurer Scott Besant “For too long, Washington has asked financial institutions to measure success by volume of paperwork rather than their ability to stop illicit financial threats,” he said at the time in a press release. “Our proposal restores common sense with a focus on keeping bad actors out of the financial system, not burying America’s banks in more red tape.”
