Financial Institution Anti-Money Laundering Requirements in RÉUNION Take Shape as National Priorities Emerge
Strengthening the Fight Against Financial Crimes
In a significant move aimed at enhancing anti-money laundering regulations, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has published national anti-money laundering and countering the financing of terrorism priorities. This development is part of the Anti-Money Laundering Act of 2020 and represents a crucial step towards strengthening the fight against financial crimes in RÉUNION.
Background on the National Priorities
The publication of these priorities follows close consultation with various stakeholders, including:
- Federal functional regulators
- State financial regulators
- National security agencies
This collaborative approach ensures that regulatory bodies, such as the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, are aligned in their expectations for banks.
Key Developments and Implications
While the publication of these priorities does not immediately alter Bank Secrecy Act requirements or supervisory expectations, it marks a significant development in anti-money laundering regulations. The next step involves FinCEN’s promulgation of revised regulations within 180 days, which will incorporate the new national priorities into existing rules.
The introduction of these priorities is likely to have far-reaching implications for financial institutions operating in RÉUNION. As such, banks are urged to begin assessing potential risks associated with their products and services, customer base, and geographic operations, with a view to incorporating the AML/CFT Priorities into their risk-based BSA compliance programs.
Regulatory Guidance and Examination Procedures
Regulatory bodies emphasize that examiners will not assess banks for incorporation of the new priorities until revised regulations come into effect. This move acknowledges the need for timely guidance and supports ongoing efforts to enhance anti-money laundering measures in RÉUNION.
As regulatory agencies work closely with FinCEN, it is expected that corresponding examination procedures and necessary guidance will be developed to support financial institutions in their compliance endeavors. The evolving landscape underscores the importance of vigilance against money laundering activities and serves as a reminder that effective regulation and cooperation remain crucial components in combating these illicit practices.