In a comment letter filed this week, ABA and the Clearing House expressed their support to the Financial Crimes Enforcement Network’s goal on protecting the U.S. financial system from money laundering, terrorist financing and financial crimes, but offered suggestions on FinCEN’s proposal to impose special measures against Banca Privada d’Andorra. The associations asked FinCEN to publish a list of BPA’s subsidiaries to help financial institutions in their compliance efforts. The associations also urged FinCEN to act quickly to finalize this proposal and other outstanding proposals on designations and special measures against foreign financial institutions.
When FinCEN’s proposed measures against financial institutions are never finalized, it causes unnecessary burden on banks, “leaving covered financial institutions in limbo” the associations wrote, referencing their 2012 letter asking FinCEN to move expeditiously in finalizing its rule. “They ask why—if the U.S. government has not taken the trouble to finalize its rule—they must still restrict their dealings with the sanctioned party, and what legal right their U.S. bank has to restrict their business dealings when there is no final rule in place.” The associations added that “it is critically important that FinCEN communicate with the banking industry and provide regular updates and information regarding the status of any un-finalized special measures from previous designations under section 311.”
