ICBA told the federal banking agencies that their proposals to update anti-money-laundering and countering-the-financing-of-terrorism programs would create additional burdens on banks without any demonstrable benefit to combatting money laundering or terror financing.
Details: In a comment letter, ICBA said the proposals would likely:
Impede banks’ efforts of achieving an effective, risk-based, and reasonably designed AML/CFT program.
Increase regulatory burden and compliance spending by hindering risk-related resource allocation.
Increase occurrences of subjective exams due to the lack of guidance.
Invalidate the competency, training, and expertise of Bank Secrecy Act officers who happen to have other positions in a bank.
Keep in place the practice of robotic and mechanical compliance.
More: ICBA added that banks would face increased enforcement risk that result from technical errors if the rule were adopted.
Background: The proposed rules would require AML/CFT programs with certain minimum components to incorporate government-wide AML/CFT priorities.
