The Federal Reserve has requested comments on a proposal to amend its requirements for banks to maintain anti-money laundering programs. The amendments are intended to align with changes to anti-money laundering program requirements separately proposed in April by FinCEN and the FDIC, the Office of the Comptroller of the Currency, and the National Credit Union Administration.
Among other changes, the proposal would require banks to focus their anti-money laundering resources based on risk, with more attention given to higher-risk customers and activities, according to the Fed. The proposed amendments would also require banks to incorporate the Financial Crimes Enforcement Network’s anti-money laundering priorities into their risk assessment processes. Under the proposal, once a bank has established an anti-money laundering program, the Federal Reserve would focus supervision and enforcement activities on significant failures to implement the program.
In April, FinCEN and federal banking agencies proposed new minimum standards for what financial institutions should include in their anti-money laundering programs and require all AML programs to include countering the financing of terrorism. The proposal would be the first major overhaul of the Banking Secrecy Act in more than two decades if adopted.
The Fed’s proposed changes are extremely similar to those of the other agencies, except for a lacking a requirement to consult with the FinCEN director prior to taking certain enforcement and supervisory actions. ABA commented on these proposals in June. As part of the comment process, the Fed is asking industry if they should include it in their requirements.
Comments on the proposal are due 60 days after publication in the Federal Register.
