The Treasury Department is exploring ways to streamline the filing process for suspicious activity reports and currency transaction reports as part of a broader effort to modernize Bank Secrecy Act enforcement, Deputy Secretary of the Treasury Michael Faulkender said today.
During a speech at the Financial Crime Enforcement Network’s BSA Advisory Group meeting, Faulkender outlined the Trump administration’s approach to BSA modernization. As part of that effort, Treasury is working to change the anti-money laundering/countering the financing of terrorism framework so it “focuses on our national security priorities and highest risk areas and explicitly permits financial institutions to de-prioritize lower risks.”
“In line with the AML Act’s directive, this includes an acknowledgment that financial institutions must be permitted to direct more attention and resources toward higher-risk customers and activities, consistent with an institution’s risk profile, rather than toward lower-risk customers and activities,” Faulkender said.
SARs and CTRs provide critical intelligence for law enforcement, but Treasury recognizes the reporting burden they pose on industry, he said.
“On the specific topic of SARs, Treasury is currently exploring ways to streamline SAR reporting, including by improving the form itself, which will be beneficial for law enforcement and national security agencies, as well as financial institution filers,” Faulkender said. “I am happy to report that Treasury is pursuing similar efforts on CTRs. Treasury recognizes that the CTR filing burden imposed on industry is substantial, and that it is critical for institutions to have the ability to direct their compliance resources towards the most significant threats to national security.”
He also said Treasury is working to ensure financial institutions are encouraged “to responsibly innovate, including exploring ways to enhance how suspicious activity is identified, investigated and reported.”
