"BSA/AML for nonbanking institutions" by Daniel P. Stipano (American Bar Association Business Law Today)
American Bar Association Business Law TodayDaniel P. Stipano
The requirements of the Bank Secrecy Act (BSA) and anti-money-laundering laws (AML) are pervasive and longstanding, yet they continue to vex companies trying to comply with them. Regulators have hit virtually all large banks, and many nonbanks, with BSA/AML-related enforcement actions, resulting in large fines, deferred prosecution agreements, criminal consequences, and reputational damage.
New BSA/AML requirements are making compliance more, not less, challenging. The Financial Crimes Enforcement Network’s Customer Due Diligence Rule, for example, will add to compliance costs and could contribute to further de-risking of bank accounts for money services businesses and other customers. This has made it more difficult for customers to maintain accounts and added to the demanding nature and already high cost of BSA/AML compliance.
The nexus between BSA/AML requirements and law enforcement and national security concerns will ensure that compliance remains a top priority for regulators and the Department of Justice. Understanding exactly what is required of an institution from a BSA/AML perspective is therefore more critical than ever.