Removing Barriers Blog

Comments submitted to FinCEN re: AML program effectiveness
Posted November 16, 2020 by CUNA Advocacy

This afternoon, CUNA has submitted comments to the Financial Crimes Enforcement Network (FinCEN) in response to its advance notice of proposed rulemaking (ANPRM) on anti-money laundering (AML) program effectiveness.

The ANPRM provided a broad definition of an “effective and reasonably designed” AML program as one that:

  1. Identifies, assesses, and reasonably mitigates the risks resulting from illicit financial activity—including terrorist financing, money laundering, and other related financial crimes—consistent with both the institution’s risk profile and the risks communicated by relevant government authorities as national AML priorities;
  2. Assures and monitors compliance with the recordkeeping and reporting requirements of the BSA; and
  3. Provides information with a high degree of usefulness to government authorities consistent with both the institution’s risk assessment and the risks communicated by relevant government authorities as national AML priorities.

In the comment letter, CUNA expresses general support for a risk-assessment process and publication of national AML priorities.  However, the letter cautions FinCEN to avoid “one size fits all” regulatory requirements, and to propose regulatory changes that are flexible depending on the institution type, size and product and service offerings.

If you have questions about this matter or AML programs in general, please contact Damon Smith at (202) 235-3390 or dsmith@cuna.coop.