ICBA told the Financial Crimes Enforcement Network that its proposed rule to update anti-money-laundering and countering-the-financing-of-terrorism programs would create additional burdens on banks without benefitting FinCEN’s efforts to reduce financial crimes.
Details: In a comment letter, ICBA said the proposed rule would likely:
Impede banks’ efforts of achieving an effective, risk-based, and reasonably designed AML/CFT program.
Increase regulatory burden and compliance spending by hindering risk-related resource allocation.
Increase occurrences of subjective exams due to the lack of guidance.
Invalidate the competency, training, and expertise of BSA officers who happen to have other positions in a bank.
Keep in place the practice of robotic and mechanical compliance impeding.
More: ICBA added that banks would face increased enforcement risk that result from technical errors if the rule were adopted.
Background: The FinCEN proposed rule would require AML/CFT programs with certain minimum components to incorporate government-wide AML/CFT priorities.