Federal banking regulators issued a joint statement updating existing guidance on compliance with the Bank Secrecy Act and anti-money laundering (BSA/AML) rules.
The statement was issued by the Federal Deposit Insurance Corp., the Federal Reserve, the National Credit Union Administration and the Office of the Comptroller of the Currency.
The statement addressed how the regulators evaluate enforcement actions when institutions fail to meet BSA/AML obligations.
Notably, the statement clarifies that isolated or technical violations or deficiencies are generally not considered the kinds of problems that would result in an enforcement action.
“The statement also addresses how the agencies evaluate violations of individual components (known as pillars) of the BSA/AML compliance program,” the regulators said in a release. “It also describes how the agencies incorporate the customer due diligence regulations and recordkeeping requirements issued by the U.S. Department of the Treasury as part of the internal controls pillar of the financial institution’s BSA/AML compliance program.”
The regulators said the statement updates and supersedes the Interagency Statement on Enforcement of BSA/AML Requirements issued on July 19, 2007, to promote a consistent approach to the application of Section 8(s) of the Federal Deposit Insurance Act and Section 206(q) of the Federal Credit Union Act.
The Financial Crimes Enforcement Network (FinCEN) simultaneously issued a “Statement on Enforcement of the Bank Secrecy Act” that sets forth its approach to enforcement in circumstances of non-compliance with the BSA.
FinCEN said the statement described its enforcement authorities, dispositions, and the factors it evaluates in determining the appropriate response and enforcement of BSA violations.
“FinCEN is committed to being transparent about its approach to BSA enforcement. It is not a ‘gotcha’ game,” FinCEN Director Kenneth Blanco said in a release accompanying the statement. “The information required by the BSA saves lives and protects our communities and people from harm. It is a national security issue.”
Through the statement, FinCEN said it aimed to provide clarity and transparency to its approach when contemplating compliance or enforcement actions against covered financial institutions that violate the BSA.
“Today’s statement outlines the administrative actions available to FinCEN, and provides an overview of the information FinCEN analyzes in order to determine the appropriate outcome to violations of the BSA,” the release stated. “FinCEN also encourages financial institutions to voluntarily and promptly report violations, and to candidly and completely cooperate with any investigation.”