July 07, 2022
Federal financial services regulators issued a joint statement to remind banks of the risk-based approach to assessing customer relationships and conducting customer due diligence.
Details: The joint statement says:
No customer type presents a single level of uniform risk or a particular risk profile related to money laundering, terrorist financing, or other illicit financial activity.
Customer relationships present varying levels of illicit financial activity risks.
Banks must apply a risk-based approach to CDD when developing customer risk profiles.
Banks that comply with applicable BSA/AML requirements and effectively manage risks are not prohibited or discouraged from providing banking services to customers of any specific class or type.
The agencies encourage banks to mitigate risks based on customer relationships instead of declining to provide banking services to entire categories of customers.