A new tool to help money services businesses better manage Bank Secrecy Act/Anti-Money Laundering (BSA/AML) risk was introduced by state regulators this week.
The BSA/AML Self-Assessment Tool, developed by the Conference of State Bank Supervisors (CSBS), is designed to reduce uncertainty surrounding BSA/AML compliance. Further, it will lead to more transparency and address risk mitigation practices within the financial sector.
“BSA/AML requirements are vital to thwarting financial crimes, and money services businesses play a major role in minimizing risk,” Albert Forkner, commissioner of the Wyoming Division of Banking and CSBS chairman, said. “State regulators are committed to helping supervised institutions develop and communicate their BSA/AML risk management programs.”
The BSA/AML Self-Assessment Tool is part of CSBS’s commitment to de-risk the state regulatory system that oversees banking and non-depository financial institutions. The regulators’ focus is on consumer protection, safety and soundness and BSA/AML compliance.
“By helping financial institutions understand and communicate their BSA/AML risk management program in a way that can be easily customized to each institution’s risk profile, we are making BSA/AML compliance more efficient and raising the industry’s overall compliance level,” Forkner said.
Bryan Schneider, secretary of the Illinois Department of Financial and Professional Regulation, will testify this week before the Subcommittee on Financial Institutions and Consumer Credit of the House Committee on Financial Services on de-risking in the financial services industry.