Financial Crime World

Pitcairn’s Banks Face Tougher Anti-Money Laundering Rules

The Office of the Comptroller of Currency (OCC) has implemented stricter regulations for banks operating in Pitcairn Islands to curb financial crimes and terrorism financing. The OCC is committed to ensuring that national banks have robust anti-money laundering (AML) controls in place.

Anti-Money Laundering (AML) Requirements

Under the Bank Secrecy Act (BSA), financial institutions are required to:

  • Establish effective AML programs
  • Screen against government lists
  • Report suspicious activities

The OCC’s implementing regulations outline specific requirements for recordkeeping, reporting, and customer due diligence. Banks must adopt innovative approaches to meet their BSA/AML compliance obligations.

Regular Examinations and Enforcement Actions

The OCC conducts regular examinations of national banks, federal savings associations, and agencies of foreign banks in Pitcairn Islands to ensure compliance with the BSA. The agency’s supervisory activities aim to detect and prevent money laundering, terrorist financing, and other criminal acts.

  • Banks must file Suspicious Activity Reports (SARs) within 60 calendar days of initial detection of a reportable transaction
  • Financial institutions are required to assist U.S. government agencies in detecting and preventing money laundering by keeping records of cash transactions, filing reports of large cash transactions, and reporting suspicious activities

Guidance and Support for Banks

The OCC encourages banks to adopt innovative approaches to strengthen their AML compliance programs. The agency has also issued guidance on developing and implementing third-party risk management practices.

  • Recent Statements: The OCC has issued statements encouraging banks to develop and implement effective AML compliance programs.
  • Guidance: The agency has provided guidance on developing and implementing third-party risk management practices.

The Bank Secrecy Act (BSA) Amendments

The BSA has been amended to incorporate provisions of the USA Patriot Act, which requires every bank to adopt a customer identification program as part of its BSA compliance program. Financial institutions operating in Pitcairn Islands must comply with these regulations to ensure the integrity of the financial system and prevent criminal activity.

  • Agencies Issue Guide to Assist Community Banks to Develop and Implement Third-Party Risk Management Practices (May 3, 2024)
  • OCC Issues Statement on Bank Secrecy Act/Anti-Money Laundering: Interagency Statement for Banks on the Issuance of the Access Rule (December 21, 2023)
  • OCC Updates Sections of the FFIEC BSA/AML Examination Manual (August 2, 2023)