The U.S Treasury’s Financial Crimes Enforcement Network (FinCEN) published new clarifications under the Bank Secrecy Act to help banks be more effective at combating illicit finance.
The new clarifications were developed in collaboration with the prudential banking agencies. Through this initiative, FinCEN seeks to modernize the process for filing suspicious activity reports. This development marks the first major rationalization of the regime since it was created.
FinCEN outlined the clarifications in a document that provides answers to some 23 frequently asked questions. The FAQs are provided to assist financial institutions in their use of the FinCEN Suspicious Activity Report.
The guidance garnered the support of the Bank Policy Institute (BPI).
“Today’s guidance is very bad news for very bad people who seek to launder money or finance terrorism through the financial system,” Greg Baer, BPI president and CEO, said. “Banks can now spend less time checking boxes and shift resources to artificial intelligence and other innovative approaches for helping law enforcement and national security officials.”
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States.