Regulators Offer Guidance on BSA/AML

WASHINGTON–Federal agencies charged with regulating the banking and credit union industries released a joint statement regarding Bank Secrecy Act and Anti Money Laundering efforts last Thursday. A release said the purpose of the Interagency Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements is to “provide greater consistency among the agencies in enforcement decisions in BSA matters and to offer insight into the considerations that form the basis of those decisions.” The statement is intended to make clear that agencies “may take formal or informal enforcement actions to address other concerns related to BSA or anti-money laundering, depending on the facts.” The statement said that the appropriate agency will issue a cease and desist order against a financial institution in case of a “failure to establish and maintain a reasonably designed BSA Compliance Program” or a “failure to correct a previously reported problem with the BSA Compliance Program.” The joint statement also reiterated the government’s position that suspicious activity reports (SAR) and their proper record keeping form the “cornerstone” of the BSA reporting system.