FED – Agencies issue statement & request for information on Bank Secrecy Act/anti-money laundering compliance

The federal banking agencies, in consultation with the Financial Crimes Enforcement Network & the National Credit Union Administration, today issued a joint statement addressing how risk management principles described in the “Supervisory Guidance on Model Risk Management” relate to systems or models used by banks to assist in complying with the requirements of Bank Secrecy Act (BSA) laws & regulations. The statement further notes that it does not alter existing BSA/anti-money laundering (AML) legal or regulatory requirements or establish new supervisory expectations, & that no specific model risk management framework is required.

The agencies, along with the National Credit Union Administration & the Financial Crimes Enforcement Network, also announced a request for information (RFI) on the extent to which the principles discussed in the guidance support compliance by banks & credit unions with BSA/AML & Office of Foreign Assets Control requirements. The agencies are seeking comments & information to better understand bank practices & determine whether additional explanation or clarification may be helpful.

Comments to the RFI will be accepted for 60 days following publication in the Federal Register.