Financial Crime World

Financial Crime Reporting in the United States: A Compliance Overview

Subtitle: Key regulations, penalties, and enforcement agencies shaping anti-money laundering and fraud prevention

The United States financial sector is renowned for its robustness and advanced regulations in place to combat financial crime. In this article, we discuss the core reporting requirements designed to combat money laundering, fraud, and other financial misdeeds.

The Battle against Money Laundering: The Bank Secrecy Act (BSA)

  • The Bank Secrecy Act of 1970 (BSA) is the cornerstone of U.S. financial crime regulatory framework
  • Financial institutions, including banks, broker-dealers, and casinos, must scrutinize transactions for money laundering activities
  • Reporting suspicious transactions and maintaining records are mandatory

Regulated Entities and Reporting Suspicious Transactions

Currency Transaction Reports (CTRs)

  • Apply to cash transactions exceeding $10,000
  • Financial institutions must file CTRs with the Financial Crimes Enforcement Network (FinCEN)

Suspicious Activity Reports (SARs)

  • Cover transactions with potential money laundering or financial crime signs
  • Must be filed with FinCEN

A Firm Grip on Fraud: Regulation F

  • Launched in 2010 by the Securities and Exchange Commission (SEC)
  • Mandates broker-dealers and their associated persons to file tips, complaints, and suspicious incident reports

Strict Penalties: The Consequences of Non-Compliance

  • Violations of financial crime reporting requirements face severe penalties
  • Fines and criminal charges
  • Escalated penalties for inadequate anti-money laundering (AML) and anti-fraud programs

Monitoring and Enforcing Agencies: The Office of the Comptroller of the Currency (OCC) and the Financial Crimes Enforcement Network (FinCEN)

  • The Office of the Comptroller of the Currency (OCC) oversees national banks, federal savings associations, and foreign banks
  • The Financial Crimes Enforcement Network (FinCEN) administers and enforces the BSA and related provisions

Conclusion

  • Financial crime reporting requirements serve as a crucial weapon against illicit activities
  • Compliance not only secures the financial sector but maintains trust in the economy. Stay informed to stay ahead of the regulatory curve and protect your business.