Community bankers are committed to supporting balanced, effective measures to prevent terrorist financing and money laundering. However, because BSA/AML requirements are outdated, community banks doubt their effectiveness.
ICBA supports statutory and regulatory changes that would make BSA/AML requirement more targeted, efficient, and effective. Community banks should be relieved from the collection of beneficial ownership information, which is already collected at the time a legal entity is formed.
Today’s outdated SAR and CTR thresholds promote over-filing and dilute their value to law enforcement. Treasury is required by the 2020 Anti-Money Laundering Act to update these thresholds. Higher thresholds will result in more valuable information and reduce community bank burden. SARs will have more value if they are appropriately risk-based.
More generally, BSA requirements should be flexible, easily applied, and effectively communicated. Congress and the agencies should continue to work with industry to reduce community banks’ mounting costs and regulatory burdens. Additional guidance is needed that is understandable and easily applied. Community banks must understand the methods of terrorist financing and money laundering they are trying to prevent.
Finally, the federal government should have consistent regulations across all financial services providers including nonbank entities.
March 04, 2022
The Financial Crimes Enforcement Network is working to issue proposed rules on beneficial ownership information access and disclosure requirements, FinCEN Deputy Director AnnaLou Tirol said.
Remarks: Tirol said developing beneficial ownership provisions of the Corporate Transparency Act—which passed as part of the Anti-Money Laundering Act—is the next step in implementing the law to protect against bad actors.
ICBA Position: In recent letters to FinCEN on beneficial ownership reporting and the agency’s broader Bank Secrecy Act review, ICBA called on the agency to withdraw bank beneficial ownership collection and verification requirements now that it is required to collect this information directly from reporting companies.