The Financial Crimes Enforcement Network plans to rescind one of its two rules establishing civil penalties for certain Bank Secrecy Act violations, which it said was made obsolete under a 1990 law adjusting the penalties for inflation.
The Treasury Department today published a list of rules and regulations that are “no longer necessary” as part of an executive order by President Trump directing agencies to eliminate “unlawful” regulation. Among the regulations to be rescinded is a FinCEN rule setting monetary penalties for certain BSA reporting and recordkeeping violations by financial institutions. The Treasury Department said the rule was made redundant by the Federal Civil Penalties Inflation Adjustment Act of 1990, and a second FinCEN regulation codifying the annual inflation-adjusted civil penalties mandated by the Act. The newer inflation-adjusted penalties are applied to all violations after Aug. 1, 2016.
Other rules to be rescinded include rules concerning governance and executive compensation at institutions that received Troubled Asset Relief Program assistance and book-entry Federal Financing Bank securities. The rule removals will be effective 60 days after publication in the Federal Register, unless Treasury receives significant adverse comments.
