Links in “BSA/AML”

The agencies are requesting comments on customer due diligence (FinCEN), fixed assets (NCUA), and Regulation C (CFPB). These comments are due during the month of October. [9/22/14]

One of the root causes of problems in a financial institution’s Bank Secrecy Act and anti-money laundering programs is a weak culture of compliance. In this video, AffirmX’s Senior Analyst Coppelia Padgett explains what a compliance culture is and what to do if it is lacking at your financial institution, especially in light of FinCEN's recent advisory. [9/5/14]

FinCEN has imposed a civil money penalty against a money services business, BPI Inc. The MSB began receiving citations in 2005, but did not adequately address examiners' findings of deficiencies in its AML system including: internal controls, independent testing, training, and suspicious activity reporting. FinCEN's director Jennifer Calvery explains that the civil money penalty "highlights that money services businesses cannot ignore their anti-money laundering responsibilities, or their examiners." [8/29/14]

Financial institutions are subject to a myriad of good ideas that range from what the industry calls “best practices” to full-blown regulatory requirements. AffirmX's Jane Pannier describes the proposed changes to customer due diligence that will potentially transition it from guidelines to law. [8/26/14]

In the attempt to make his casino more hospitable, George Que agreed with a number of high-end gamblers, including some undercover agents, to not file CTRs or SARs. As a result, FinCEN has permanently barred Mr. Que from working within the financial industry due to his willful violations of the BSA. Oh, and there was a $5,000 civil money penalty. [8/21/14]

New York's regulator fines Standard Chartered Bank $300 million for failing to meet the anti-money laundering requirements it agreed to in 2012. In addition, the bank must suspend U.S. dollar clearing services to retail clients of the bank in Hong Kong. [8/21/14]

Another Liberty Reserve executive pleads guilty to charges of money laundering. The digital currency operation, branded as the "bank of choice for the criminal underworld," was shut down by regulators last year. Agencies from 17 countries combined to take Liberty Reserve down. [8/19/14]

FinCEN has issued an advisory on the importance of nurturing a culture of BSA/AML compliance, including ensuring that compliance concerns are not compromised by revenue interests, providing adequate human and technological resources, and engaging independent and competent testing. [8/13/14]

A survey of small- to mid-sized financial institutions finds 26% very likely and 8% somewhat likely to change AML providers in the next 2-3 years. [8/13/14]

FinCEN is working together with its Mexican counterpart, the Unidad de Inteligencia Financiera, in order to crack down on cross-border cash transactions. FinCEN Director Jennifer Shasky Calvery states that “FinCEN is committed to working closely with our Mexican counterparts, law enforcement, and industry partners to bring greater transparency along our border and safeguarding the integrity of our financial systems.” [8/4/14]