Agencies propose amending BSA requirements

Federal banking regulators formally requested comment on a proposed rule that would amend Bank Secrecy Act requirements for anti-money-laundering and countering-the-financing-of-terrorism programs.

About the Proposal: The proposed amendments—which the FDIC board of directors approved last month—are intended to align banking agency regulations with the Financial Crimes Enforcement Network’s proposed changes to AML/CFT standards under the Anti-Money Laundering Act of 2020.

Proposed Amendments: The proposal:

  • Would include a risk assessment process in the AML/CFT program rules that requires, among other things, consideration of the national AML/CFT Priorities published by FinCEN.

  • Would add customer due diligence as a required component of the agencies’ AML/CFT program rule.

  • Includes amendments to codify longstanding AML/CFT supervisory expectations.

Interagency Statement: The prudential regulators also issued an interagency statement with FinCEN, which issued a separate AML/CFT proposal last month. The statement says that while banks are already required to have BSA compliance programs, the agency proposals are designed to account for changes enacted by the Anti-Money Laundering Act of 2020.

Comment Deadline: Comments on the proposal are due 60 days after the date of publication in the Federal Register.

ICBA View: In a 2022 comment letter, ICBA laid out its plan for FinCEN to modernize its BSA framework. Responding to a FinCEN request for information under the AML Act, ICBA urged the agency to raise Suspicious Activity Report and Currency Transaction Report thresholds and withdraw bank beneficial ownership collection and verification requirements, among other recommendations to alleviate compliance burdens while producing more useful information for law enforcement.