Financial Crime World

US Banking Regulations Strengthen Anti-Money Laundering Efforts

The Office of the Comptroller of the Currency (OCC) has implemented strict regulations to ensure national banks and financial institutions have adequate controls in place to prevent money laundering, terrorist financing, and other criminal activities.

Strengthening Compliance with Bank Secrecy Act (BSA)

To achieve this goal, the OCC conducts regular examinations of national banks, federal savings associations, federal branches, and agencies of foreign banks in the US to assess compliance with the Bank Secrecy Act (BSA). The BSA requires financial institutions to:

  • Establish effective programs for detecting and reporting suspicious activity
  • Maintain accurate records
  • Provide necessary notices to law enforcement

Resources and Tools for Strengthening AML Risk Management Programs

The OCC provides financial institutions with access to resources and tools to strengthen their anti-money laundering (AML) risk management programs, including:

  • BSA/AML bulletins
  • Advisories from the Financial Crimes Enforcement Network (FinCEN)
  • Related information from the Basel Committee on Banking Supervision

Encouraging Innovation in Compliance Obligations

In addition, the OCC encourages banks to adopt innovative approaches to meet their BSA/AML compliance obligations and further strengthen the financial system against illicit financial activity. The agency works closely with other regulatory bodies, including:

  • Board of Governors of the Federal Reserve System
  • Federal Deposit Insurance Corporation
  • Financial Crimes Enforcement Network (FinCEN)
  • National Credit Union Administration

Combating Money Laundering and Terrorist Financing

The OCC’s efforts are focused on combating money laundering and terrorist financing, which pose significant risks to the safety and soundness of the US financial industry. To combat these threats, banks must:

  • Establish effective BSA compliance programs
    • Customer due diligence systems
    • Monitoring programs
    • Screening against Office of Foreign Assets Control (OFAC) lists
    • Suspicious activity reporting processes

Filing Suspicious Activity Reports (SARs)

Financial institutions are also required to file Suspicious Activity Reports (SARs) within 30 calendar days of detecting suspicious activity. These reports provide law enforcement agencies with critical information to detect and prevent money laundering and terrorist financing activities.

Guidance Documents and Advisories

In recent years, the OCC has issued several guidance documents and advisories to assist financial institutions in meeting their BSA/AML obligations, including:

  • A guide on developing and implementing third-party risk management practices
    • Provides community banks with a framework for managing risks associated with third-party relationships

Conclusion

The OCC’s efforts have been recognized as an important step in strengthening US banking regulations against money laundering and terrorist financing. By working together with other regulatory bodies and financial institutions, the OCC is helping to protect the integrity of the US financial system and prevent illicit activities that threaten national security.