Partner Dan Stipano in American Banker Article: Time to Bring BSA into this Century
American BankerDaniel P. Stipano
As the Bank Secrecy Act approaches its 50th anniversary, legitimate questions have arisen about the efficacy of anti-money-laundering requirements and the burden of compliance. The pace of technological advances in the financial services industry, coupled with the negative consequences of skyrocketing compliance costs, make this a good inflection point to assess the current state of the regulatory regime and explore ways in which it could be improved.
The BSA was enacted in 1970 primarily as a means to deter and prevent tax evasion. Since then, it has transformed into one of the main weapons in the fight against narcotics trafficking, money laundering and post-Sept. 11, terrorist financing. Dozens of regulations have been written to implement the statute, many of which have been part of banks’ compliance routine for years.
Originally published in American Banker; reprinted with permission.